Deficits

As deficits soared following the Bank of England's rate cut and stimulus package, the future for DB looks even more challenging. A major re-think is needed to avert a pensions crisis, writes Stephanie Baxter

The liabilities of defined benefit (DB) pension schemes continued to increase last month amid further falls in yields, according to the Pension Protection Fund's (PPF) 7800 Index.

The Pensions and Lifetime Savings Association (PLSA) has called for the Pensions Regulator (TPR) to "take a proportionate and flexible approach" to defined benefit (DB) scheme funding.

Defined benefit liabilities have risen by an eye-watering £70bn on the back of the Bank of England's (BoE) decision to cut interest rates and launch a new round of quantitative easing (QE).

Damning research by the Pensions Institute has uncovered a number of ways by which sponsoring employers can shed or avoid their defined benefit (DB) deficits.

The Bank of England's decision to cut interest rates for the first time in seven years will keep gilt yields lower for longer, increasing scheme deficits which are already at record highs.

Greggs' defined benefit (DB) pension deficit soared by £12.3m over twelve months, its interim report has revealed.

BBA Aviation has revealed it has closed its UK defined benefit (DB) scheme to future accrual, following a consultation with members.

Trinity Mirror Group's defined benefit (DB) pension deficit has increased by £120.8m to £426m in the past six months, driven by a fall in long-term interest rates.

Total deficits of UK defined benefit (DB) schemes have reached an all-time high for the sixth month in a row, according to JLT Employee Benefits.