Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • December 2013
12

PwC: DB pensions deficits immune to economic upturn 

Open-access content Monday 9th December 2013 — updated 5.13pm, Wednesday 29th April 2020

Renewed confidence in the economy is not yet manifesting itself in more manageable pension deficits, PricewaterhouseCoopers has said today

Publishing its Pension Support Index, the consultants noted that companies' ability to support defined benefit pension obligations had stalled and showed little sign of improving. As a result, pension stakeholders needed to take a more proactive and joined-up approach to managing risk, PwC said.

The index tracks the overall level of support provided to DB schemes by FTSE 350 firms. This currently stands at 76 out of a possible score of 100, an improvement on the low of 64 recorded in March 2009, but still far off the peak of 88 seen in the pre-recession period.

Steven Dicker, pensions partner at PwC, said: 'Given the continued economic uncertainty, pension stakeholders can't simply wait and hope for improvements to their pension scheme's position. They need to get proactive and look for ways to improve their investment performance and more innovative funding mechanisms such as asset-backed contributions to provide continued security to the scheme.

'Without action, defined benefit pensions obligations will remain a huge drag on companies' balance sheets and could halt their growth prospects.'

Jonathon Land, PwC pensions credit advisory partner, added that The Pensions Regulator's focus on helping schemes take a more joined-up approach to investment, funding and covenant would reduce the risks DB schemes pose to companies.

He said: 'Pension schemes' strategic decisions should be based on the level of risk their employer covenant can support, the contributions an employer can afford and sustainable investment in the long-term future of the company.

'This will lead to a more collaborative approach between employers and trustees, and better alignment with a company's future business plans.'

This article appeared in our December 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

TPR seeks views on public sector pensions governance code

The Pensions Regulator today began consulting on its draft code of practice developed to help public sector pension schemes meet their statutory governance and administration requirements.
Tuesday 10th December 2013
Open-access content

State pension costs set to soar to £438bn, says ONS

The cost of state pensions is set to quadruple over the next 50 years, according to updated figures released by the Office for National Statistics.
Thursday 12th December 2013
Open-access content

DB closure rate slows down, NAPF poll finds

The closure rate of defined benefit schemes eased slightly this year with 12% remaining open to new members in the private sector, the National Association of Pension Funds has said.
Thursday 5th December 2013
Open-access content

Mercer backs 'comply or explain' approach to DC pension charges

Mercer has backed a ‘comply or explain’ approach to annual management charges, warning that fee caps risk putting more innovative products out of reach.
Tuesday 17th December 2013
Open-access content

Public back collective pensions model, IPPR finds

‘Dutch-style’ collective pensions have emerged as a most popular option with the British public for retirement saving, a think-tank said today.
Wednesday 18th December 2013
Open-access content

PPF publishes 2014/15 Levy Determination

The Pension Protection Fund has confirmed that the pension protection levy estimate for the next financial year will remain at £695m, as proposed in its September consultation
Wednesday 11th December 2013
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from December 2013

ta

Trustees urged to complete TPR toolkit

Pension scheme trustees have been urged to bring themselves up to speed with key retirement policies and legal developments by completing new modules in The Pension Regulator's trustee toolkit.
Thursday 31st July 2014
Open-access content

Driverless cars 'require new insurance approach'

There needs to be a fresh approach to motor insurance if driverless cars are to become a feature of the UK road landscape, a senior industry leader has claimed.
Wednesday 30th July 2014
Open-access content

Annuity sales 'down 44% over the year'

There was a 44% drop in annuity sales in June when compared to the same month last year, according to research by financial systems provider IRESS.
Wednesday 30th July 2014
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 12

ta

Trustees urged to complete TPR toolkit

Pension scheme trustees have been urged to bring themselves up to speed with key retirement policies and legal developments by completing new modules in The Pension Regulator's trustee toolkit.
Thursday 31st July 2014
Open-access content

Driverless cars 'require new insurance approach'

There needs to be a fresh approach to motor insurance if driverless cars are to become a feature of the UK road landscape, a senior industry leader has claimed.
Wednesday 30th July 2014
Open-access content

Annuity sales 'down 44% over the year'

There was a 44% drop in annuity sales in June when compared to the same month last year, according to research by financial systems provider IRESS.
Wednesday 30th July 2014
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Investment Consultant

Scotland / Scotland, Edinburgh / London, England
Up to £70000.00 per annum
Reference
148689

Market Risk Capital Actuary/Quant

London (Central)
£65,000 - £115,000 plus bonus and package
Reference
148688

Experience Analysis Contractor

England
Negotiable
Reference
148687
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ