Companies and staff learn to take care

pensions

Many employers are moving from defined benefit schemes to defined contribution schemes which are riskier for employees. However a fairer solution might be hybrid schemes which share the risk between employers and employees

Once heralded as a great success, when investments were reaping good returns for many companies, the DB pension has become a burden. It is an open-ended liability, which combined with lower investment returns and increased longevity, is becoming a serious cash drain. A DB scheme can restrict growth, restrict capital investment opportunities and even put a brake on M&A activity. But most employers are committed to keeping their pension promises and are searching for solutions to provide their employees with a decently funded pension without the risk of forcing the company into insolvency. ...