Is This The End Of Final Salary Pension Schemes?
News that the UK's top 100 companies have seen a massive fall in their pension funds values has led to suggestions that the end of the final salary pension scheme is nearing. In total the top 100 companies in the UK saw pension fund values fall from a surplus of £12 billion this time last year to a deficit of £41 billion today. The trend is being replicated across the board in the final salary pension scheme sector.
When you consider that many of the top 100 companies can ill afford to add extra funds to their pension funds at the moment, with free cash in short supply, it is not difficult to guess how some smaller companies will be fairing. The survey by Lane Clark & Peacock has confirmed the worst fears of many amid calls for the government to reduce the straight jacket placed around the pension industry and look a little more long term.
The government can huff and puff as much as they want and exert as much pressure as they see fit, but if these companies cannot support their pension funds it will be the pensioners who suffer in the end. Every sector in the UK economy has seen help from the authorities but the pension fund industry is still very much under the same rules as those in play when the economy was flying high.
Share this..
Related stories
Santander delays possible float of UK division
Despite the fact that hundreds of corporate bankers in the UK had already begun to lick their lips at the prospect of a potential float of Santander's UK division, these hopes have been dashed with news that the division will not be sold before spring 2011 at the earliest. The company has today confirmed that an immediate flotation of the UK division, taking in Abbey, Alliance and Leicester and Br...
Read MoreConservative party refuses to bail out Pension Protection Fund
A Conservative government would not underpin the financial liabilities of the Pension Protection Fund (PPF) according to the shadow pensions minister Nigel Waterson. While this headline will make uncomfortable reading for many in the UK who are concerned about their employer pension scheme, there is a reason why the authorities would not automatically underpin compensation payments funded by the P...
Read MoreGordon Brown causes international row over banking tax
As we covered in one of our earlier posts, Gordon Brown has caused an international row over his demand for a banking tax on all international financial transactions. The move, which was mentioned some time ago, has effectively been blocked by the US government leaving Gordon Brown and the UK authorities high and dry and "out of the loop". This is a tax which has been discussed for decades and is...
Read MoreWho made the big money in Dubai?
While there is no doubt that the Dubai property market in particular, and the overall economy to a lesser extent, has been very strong over the last decade the fact that the ruling family has been left with a $80 billion deficit prompts the question - "Who made all of the money?" The vast majority of investors in Dubai were attracted by the property sector which was supported by a strong econom...
Read MoreJobs for the boys, or the boys for the job?
Gordon Brown has announced something of a surprise cabinet reshuffle today which has seen a number of new posts created and the return of some old faces. There is a feeling that the PM is looking to create something of a war cabinet to ensure Britain gets through the current crisis in one piece. But is it a case of jobs for the boys or the boys for the job?
While the likes of Pete...