Firms' Pension Plans Start to Stabilise

Western MailMarch 23, 2011

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Summary


CHANGEin the way inflation is measured and a stabilising in life expectancy is set to significantly improve the funding position of defined benefit pension schemes.

The Government's decision to allow companies to increase pension benefits in line with inflation as measured by the Consumer Prices Index (CPI), rather than the Retail Prices Index (RPI), is set to wipe off nearly pounds 60bn of private sector pension liabilities by the end of 2011, according to KPMG.

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Firms' Pension Plans Start to Stabilise

The group said just more than half of the companies it questioned were now using C...

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