Rosalind Connor in Pensions Expert on ITV absorbing the Wireless Group's DB pension scheme
This has led to a widespread recoil from assuming additional DB burdens, Connor said. “People would even say, ‘I’m only buying this if something is done about the pension scheme before I buy’,” she said, adding that this trend has changed more recently.
“We’re increasingly getting purchasers who are either trade purchasers who understand the business, or people who have a good understanding of pensions and their liabilities and are able to make a much more nuanced assessment of the pension liability and the risks attached,” she said.
Connor said uncertainty over future liabilities continues to hold many companies back, but ITV, which has a £3bn scheme, is “not going to be at any more risk by buying a company with a DB pension scheme”.
Read the full article in Pensions Expert here.
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