Uncertainty, volatility, and vast changes on the horizon – pensions for the FTSE 100 enters uncharted territory.
Pension schemes for the FTSE100 were generally in a relatively healthy position over 2019. The IAS19 funding level, for the FTSE100 as a whole, was either close to or better than fully funded throughout 2019. We also started to see the effects of pressure from regulators and investors on Executive pensions.
2020 however has brought market turmoil: the impact of Covid-19, and general chaos, uncertainty, and unpredictability. We have observed record high IAS19 funding levels, followed quickly by record low IAS19 assumptions. There have also been delays in important consultations and planned legislative changes which combined could represent the biggest overhaul of pension scheme governance for over 25 years.
What's inside Accounting for Pensions 2020?
- Section 1: 2019 IAS19 assumptions benchmarking
- Section 2: Developments since the 2019 year end and Covid-19
- Section 3: Trends in pensions strategy
- Section 4: Evolution of executive pension provision
2019 was an eventful year in pensions, but this has been eclipsed by the start of 2020 and the disruption inflicted by Covid-19. As the dust begins to settle, companies must consider how to adjust their pensions objectives for a new beginning and to reflect the “new normal”
How we can help
Contingent funding approaches are rapidly becoming more widespread. They can be a great way to protect member benefits as well as the shareholders and other creditors of the sponsoring employer.
We help sponsors of pension schemes understand and manage the costs and risks associated with supporting their current and legacy pension schemes as well as other employee benefits.
Whether to enter a DB Consolidator is a complex decision. Sponsors and Trustees must be sure it is the right decision for their scheme and its members. We can help.
We work with you and your finance team to ensure that your ongoing statutory duties and compliance exercises are done quickly, efficiently and accurately.
We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.