Pension deficits ‘hit firms harder’
FINAL salary pension deficits are hitting the competitiveness of UK firms and making it harder for them to restructure, research showed today.
One in three companies think the schemes have “significantly obstructed” mergers and acquisitions or internal restructuring, leading to reduced competitiveness.
Defined benefit pensions, which have become more expensive to offer in recent years, have become a leading issue in boardrooms, according to the study by consultants Watson Wyatt and the CBI.
Around 73% of directors believe firms will have to increase their contributions to them even more in their next funding plan.
Eight out of 10 directors expect the majority of the remaining final salary schemes to be closed to existing members in the next few years.