The Problem Statement
Pension funding is bringing new reputational, governance, finance and accounting problems to Boardrooms. The Pension Schemes Act 2020 sets a tough regulatory framework.
The mix of low interest rates and the derisking of investment returns is recognised as causing issues. Now, the funding targets set for schemes under The Pensions Regulator’s (TPR) new Funding Code are to move to self-sufficiency and buyout. Unless asset returns deliver the extra money, corporates will be paying considerably more in cash than their accounts currently suggest or actuarial deficits have been suggesting.
Further, the “Stronger Pensions Regulator” can cut across corporates’ dividends, leverage and transaction plans. The powers are backed with reprimands, fines and criminal sanctions. But it also has a statutory obligation to support sustainable growth. It is now open to new initiatives and guarantees in bespoke solutions.
Corporates can respond positively to the challenges posed and move decisively to a defensible position.
The Action Plan
C-Suite Pension Strategies has the ideas and the actuarial and insurance sector contacts to make implementation possible
The Government and TPR want action. Corporates can respond and all stakeholders’ benefit.
C-Suite Pension Strategies has an established network of senior executives from across the corporate and actuarial space – most particularly in banking and insurance.
William McGrath, Founder of C-Suite Pension Strategies, ex CEO of Aga Rangemaster email@example.com