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Companies worried about funding pensions

Pension scheme funding is a huge concern for UK companies with 80% of employers worried about their organisations cash funding commitments to their UK pension scheme and 45% worried about inability to pay dividends.

According to PricewaterhouseCoopers (PWC), 86% of employers are concerned about their company's lack of control or influence on their cash funding commitments.

Employers also foresee change involving their pension schemes, with 32% saying they intend to change the extent to which they control the pensions process and 38% planning a different relationship with their pension advisers in the future.

Marc Hommel, partner and UK pensions leader at PwC, said: "Cash is in short supply so some organisations need to find a way to unwind their existing pension scheme cash funding commitments.

"It is in the long-term interests of scheme members that sponsoring organisations survive the downturn, which means some trustees will have to accept short-term reductions in funding and increased use of back-end assets such as property, in lieu of immediate cash."