![]() |
- 40 ABC structures have been implemented since 2010, funding more than £5bn of pension schemes’ deficits - they are likely to become more popular as employers seek protection against overfunding |
Latest research from Deloitte has found that Asset Backed Contributions are being increasingly used by companies to fund smaller pension scheme deficits. ABCs were traditionally an option only for large pension schemes with contributions as large as £600m used to fund deficits. However, demand from smaller schemes has risen due to increased flexibility and lower implementation costs. The research – ‘Pension funding solutions: The evolving ABC market’ - shows:
• 80% of ABCs in 2013 were used to fund deficits of less than £100m – up from 50% in 2010, David Robbins, Pensions Advisory Partner at Deloitte, said: “FTSE 100 pension scheme deficits have shrunk over 2013 but we estimate the aggregate deficit is still close to £100bn. However, this could all be eliminated if gilt yields continue to rise, leaving schemes in surplus. ABCs offer an alternative for companies that don’t want to pay cash into their pension schemes with no hope of ever seeing it again if a scheme’s fortunes improve. “A variety of assets classes are being used in ABCs. Loan notes have become a more popular asset choice but real estate, stock and intellectual property are also used.”
“Wider understanding and greater flexibility of ABCs has helped make the structures more accessible to smaller schemes. Only half of the implementations in 2010 were to fund deficits of less than £100m. This figure has increased to more than 80% in 2013 and I expect this trend to continue.” |
|
|
|
Capital excellence in the capital - S... | ||
London - Negotiable |
Life Reinsurance Associate - Bermuda | ||
Bermuda - Negotiable |
Life Reinsurance Director - Bermuda | ||
Bermuda - Negotiable |
Scotland - the price is right! | ||
Scotland / hybrid 2-3 dpw office-based - Negotiable |
Projects Actuary | ||
South East / hybrid 1-2 dpm office-based - Negotiable |
Technical Business Analyst - Internat... | ||
Bermuda - Negotiable |
Senior Pensions Manager - Assurance | ||
Flexible / hybrid 2-3 days p/w office-based - Negotiable |
Head of Pricing | ||
London - Negotiable |
Consultancy Bonanza! | ||
UK-wide / London / hybrid - Negotiable |
Service Delivery Manager - Pensions | ||
Scotland / remote / 2 dpm in the office - Negotiable |
Life Actuarial Student – Risk | ||
Glasgow / hybrid 2 dpw office-based - Negotiable |
ALM Strategy Specialist | ||
Bermuda - Negotiable |
Senior Casualty Reinsurance Actuary | ||
London - £140,000 Per Annum |
Senior Pensions Administrator - Midlands | ||
Birmingham / hybrid - Negotiable |
Senior Pensions Administrator - Scotland | ||
Scotland / hybrid 2 days per month office-based - Negotiable |
Junior Investment Analyst | ||
South East - Negotiable |
International Capital Management Actuary | ||
Bermuda - Negotiable |
VP Reserving Actuary | ||
London - £150,000 Per Annum |
Calling all BPA analysts! | ||
North West / hybrid 50/50 - Negotiable |
Financial Planning & Analysis Actuary | ||
London/Hybrid - Negotiable |
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.