Pensions remain a huge challenge for UK employers

The economic turmoil of the last few years has meant employers with defined benefit pension schemes are facing significant deficits that they need to repair, a range of pension risks which could materially impact the sponsoring business and trustees demanding more cash than ever before.

This potent cocktail of issues is further complicated by upcoming legislation that will affect the tax position of higher earners who participate in pension schemes, the requirement to ensure all employees in the workforce are enrolled into a pension scheme, and pension accounting changes that could substantially reduce disclosed profits.

Employers are recognising that short-term piecemeal approaches simply will not create a solution to all of these problems.  PwC has worked successfully with a significant number of clients to not only fix the issues created in the past, but to find a solution that is future proofed and will ensure employers can continue to help their employees save effectively for their retirement.

Future benefit design

• Tax-relief restrictions on pensions from April 2011 could affect a significant proportion of your employees - contact Marc Hommel
• Pensions enrolment costs to bite from 2012 - contact Peter Woods
• Mass closure of defined benefit pension schemes - contact Peter McDonald

Managing legacy defined benefits liabilities

• Managing pension scheme cash demands - contact Raj Mody
• Pensions - Deficit contributions are 20% higher than necessary- contact Raj Mody
• Managing trustees’ perception of covenant and the resulting impact on cash flows - contact Jonathon Land
• Using non-cash (or contingent) assets for more efficient pension funding - contact Brian Peters
• Tackling significant risks that pension schemes pose to sponsoring employers - contact Chris Massey
• Reducing pension liabilities by offering trades to former employees  - contact Sean Bottomley
• Changing pension financing strategy to reflect accounting changes, which mean higher P&L expense and volatility - contact Vani Thavarajah