The government must act to curb soaring cost of funding occupational pension schemes which is harming businesses' ability to invest and create jobs, employers have said.
The Confederation of British Industry (CBI) wants minsters to address both the artificially high deficit figure, driving by low gilt yields and a potential 25% hike in the cost of the Pension Protection Fund (PPF) levy. Gilt yields are used to value the cost of pension in the future - this has increased deficits even though there has been "absolutely no" change in the underlying funding position. Companies pay in about £36bn a year into defined benefit (DB) pensions. John Cridland, CBI director-general, said: "A solvent, profitable company as sponsor is the best protection for a pe...
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