Defined Benefit Pensions Appear to have Defined Life Span
It is predicted that the majority of large plcs will cease defined benefit pension provision to all employees within three years, according to Pension Capital Strategies (PCS).
The total deficit of such schemes was estimated to be £102 billion at the end of June 2009 a three fold increase from the £34 billion three years ago.
Meanwhile, 39 firms have disclosed pension liabilities greater than the total equity value of the company, while 12 admitted having liabilities valued at over double the worth of the company.
For plcs to struggle how does that leave government funded schemes.What we do know is that councils are struggling to meet the spiralling cost of increasingly aggressive pension regulations. Council tax bills in some areas total cost for pension provision is over 30% of the annual budget.
How do you feel about the divide in the quality of the pension provision for government employees and the rest of society?
Should the local authorities now move onto defined contribution schemes?
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