Archive for May 2005

Brian Spence

The increased pension flexibility likely to be available after April 2006 may well provide an unexpected lifeline for the sponsoring employers of many of the UK’s beleaguered final salary pension schemes as well as result in increased choice for their scheme members. It is likely that the new regulations will permit occupational pension schemes to provide higher levels of tax free cash, for a significant number of members, than would be available under current regulations, which could in turn mean that the cost of providing the total benefits is lower. Read more »

Brian Spence

At a time when the prospects for the future success of many business’ is now affected by the level of their pension scheme deficit, companies are employing ever more innovative solutions to address the problem with which they are faced. The changes which the government imposed in June 2003 mean that it is now extremely difficult for solvent employers to escape from the liabilities they have already accrued. However, what is still possible is to control the timescale over which deficits are met and the finance methods used to fund them. One potential solution currently being employed is the use of bank lending to cap off the liability level as this re-financing can reduce cost, control risk and provide a degree of increased certainty for shareholders and employees alike. Read more »

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