Gordon Brown's decision to abolish tax relief on dividends to pension funds in 1997 has cost the 200 largest defined benefit pension schemes £20bn, claims Aon Consulting.
Although pension deficits have now decreased to £26bn, the accounting measurement Financial Reporting Standard 17 (FRS17) is hiding the underlying volatility of scheme deficits, claims Aon Consulting.
The decision to measure pension deficits under Financial Reporting Standard 17 could be driving companies and trustees into a more conservative investment strategy which could prove costly in the long term, claims the Association of British Insurers....
Pensions reporting under International Financial Reporting Standards should be explained more simply with more disclosure of the uncertainties around accounting estimates.
New accounting standard rules are encouraging employers to come up with more innovative ways to manage defined benefit (DB) pension liabilities.
Contributions to the final salary pension funds of the top 100 companies increased last year by an average of 30%, according to research by consultants Watson Wyatt.