DB scheme funding affects the share prices

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More than a third of companies believe the cost of funding a defined benefit (DB) pension scheme is having a negative impact on their share price, claims research from Aon Consulting.

Of 115 companies running DB pension schemes, Aon found 36% believe the funding costs are currently having a negative impact on share prices, while 38% think it will continue to do so in the future. The research also shows half of the businesses think the increasing costs are affecting their ability to compete effectively in the marketplace, while 58% believe the potential pension commitments for the future would continue to affect the company’s competitive performance. Additional results from the survey reveal 40% of companies see pension deficits contributing to the rising costs of goo...

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