Oil price hurts DB schemes

uk's final salary pension schemes lose 1% of funding level because of soaring oil price

The UK's remaining final salary pension schemes lost 1% of their funding level because of the soaring oil price. Oil price rises around the world have had a knock-on effect of driving up bond prices and reducing yields, and it is these yields that form a vital part of how pension fund asset/liabilities are calculated, according to Towers Perrin. Lower bond yields reduce pension scheme funding levels and the human resources consultant found that this negative effect more than outweighed any gains in shares and fixed interest held in pension schemes. Towers Perrin calculated the average fu...