Author Topic: Is there a Company Pensions Scandal Brewing  (Read 1878 times)

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Offline nichola

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Is there a Company Pensions Scandal Brewing
« on: November 06, 2017, 19:30:41 PM »
I was reading in the Financial Times (Nov16) that BT has the second-worst funded pension scheme in the world, with a 36% gap between its pension obligations and the resources put aside to fund them; a pension deficit of almost £10bn according to a report that, for the first time, analysed the health of more than 5,000 company pension funds across the globe.

MSCI’s report found that the funding status of UK companies was weaker than the rest of Europe. The UK had the greatest percentage of companies with the biggest underfunded ratios, the gap between a company’s exposed pension liabilities and its annual revenues.


Fast forward to this year (Sept17) the Telegraph Money/Pensions reports

Thousands of pensioners face the prospect of sharply reduced retirement incomes as major British companies attempt to alter the terms of ruinously expensive pension pledges. Telecoms giant BT has written to current and former workers informing them it is going to court to determine whether it can reduce the annual increases applying to pensions paid to its employees. Figures produced by Prudential, the insurer, for Telegraph Money, suggest the average pensioner could lose well over £100,000 over a typical 25-year retirement under the sort of changes BT has outlined.

However, BT is far from the only business seeking to argue that previous promises (I'd call them contracts) made to staff are today unaffordable, and that they should be allowed to “water down” some of the benefits.



Financial Times source here https://www.ft.com/content/5505d45e-ac29-11e6-ba7d-76378e4fef24?segmentid=acee4131-99c2-09d3-a635-873e61754ec6

Telegraph Money/Pensions source here http://www.telegraph.co.uk/pensions-retirement/news/bts-move-cut-workers-pensions-has-implications-millions/




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