A real appetite for reconstruction

DB pensions

Even if employers close their schemes to new members there is still future accrual, salary increases, further potential increases to longevity and volatility of investment returns, so another option is structured buyouts.

Even the most optimistic among us now recognise that defined benefit schemes are in decline. The problems which have led to this unfortunate situation are numerous: lower than normal investment returns, increased longevity, complex and expensive pensions and finance legislation - with increasing volumes of it from Europe. There has also been increased pressure from the Pensions Regulator which has demanded more of trustees and employers. So it is really no surprise that even the largest and healthiest of schemes are having to consider their options. Before the full buyout regulations came ...