Questions and Answers for the Changed Pensions Landscape: Should Sponsors be Encouraged to Stay?
Members should consider their position in the current system and revolt.
The position of C-Suite Pension Strategies is that corporate sponsors need to “get stuck in”. The industry is not working in either their or in scheme members’ best interests.
The 2004 Pensions Act introducing TPR and PPF was a success. Higher cash funding and derisking have left many schemes well placed. Schemes should now be revived on a modernised (C)DC basis.
The trigger for change is the ESG commitment of Boards and the risks in greenwashing. Pension funding strategies provide excellent test cases of rhetoric against reality. At the same time members should revolt. With inflation higher than most scheme increase caps, then annuitisation is not a path to “peace of mind”.
Overall “endgame” thinking is inappropriate. It is not the End: it is not a Game.
A change in the premise of corporate sponsors to embrace from “get risk ASAP” can be transformational, showing how it is not too late for many sets of trustees to reengage with members and provide them with better outcomes.
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