Trustees of final salary pension schemes should act to support their sponsor companies during the economic downturn, despite facing a £45bn annual shortfall, according to Aon Consulting.
The firm warns of a ‘triple whammy’ of problems facing final salary schemes and their sponsors, masking the full extent of their losses. Aon says the economic downturn will have a major disruptive effect on final salary pension schemes which cannot be ignored. Firstly, as trading conditions become more difficult, trustees may seek higher contributions from the sponsoring employer to make up for its perceived weakness, further damaging the sponsor firm. Liquidity issues are also problematic, with many companies finding it harder to free-up cash needed to meet their agreed contribution lev...
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