25th September 2017 Rosalind Connor discusses DB scheme reformation at the Professional Pensions Trustee Senate
One of the big discussion points in the industry this year has been the security and sustainability of defined benefit (DB) schemes and whether the system is ripe for reform. More is yet to come with the government due to publish a white paper this winter following on from its green paper on the published in February.
Speaking on a panel at the Professional Pensions Trustee Senate, Partner Rosalind Connor said it is difficult to know what a ‘material risk’ is.
“The reason why people disagree is that people never use the same definition exactly. I don’t know what counts as a significant chance [of a scheme failing] and I have got nervous about the concept of stressed schemes. My worry is that looking at this, I don’t know how we identify them and what to do about them.”
The government’s DB green paper has opened the door to change and the industry should embrace it.
Rosalind expressed scepticism about what could be done, and said she is “still at a loss as to how we are going to solve this crisis”.
The government’s white paper later this winter will hopefully provide some answers for DB schemes under financial pressure.
Read the full article in Professional Pensions here
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