FIGURES OUT next month are expected to show more British businesses than ever before are cutting dividends because they need cash to cover black holes in their pension funds, according to the Times .
The CBI warning comes after it was revealed last week new rules of the Pensions Regulator may lift companies’ annual contributions to tackle pension fund deficits from £26bn to £37bn, says the Times. If the extra £11bn were covered solely by shareholders’ payouts, the FTSE all-share dividend would be cut by 20%, according to Donald Duval, chief actuary of Aon Consulting and former government actuary of Australia. The Pensions Regulator is currently consulting on proposals which suggest companies must clear their final salary deficits within ten years. The regulator has admitted as many a...
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