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The Actuary The magazine of the Institute & Faculty of Actuaries
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Charity begins with pensions?

Alexander Forbes has reported on the large scale of deficits faced by charities, which the company now estimates exceed £1 billion in total. Many are struggling to finance deficits on past pension liabilities and facing a recession where fundraising may be more of a battle than in the recent past. According to Alexander Forbes, the financial climate has presented a double whammy, affecting not only likely income but also the value of the investments backing their pension liabilities.

Accounting as a going concern, with future fundraising to meet their recovery plans, charities may look in a less difficult position than looking at the solvency position. Is it possible, perhaps, that wellknown charities might be future candidates for Pension Protection Fund calls?