Industry calls for a funding review

Industry pressure for a review of the Minimum Funding Requirement (MFR) has been growing with general criticism of the requirement to hold assets that will match liabilities over a maximum three-year term. Paul Myners, who is heading up the Government-backed review of suitable investment vehicles within occupational pension schemes, issued his consultation paper in May. He posed questions about the investment strategies of pension funds relating especially to over-dependence on benchmarking, herding and low levels of investment in small enterprises and companies. Providers and consultants...