Archive for July, 2008
NAPF warns on ASB proposals
The National Association of Pension Funds (NAPF) has warned that proposals put forward by the Accounting Standards Board (ASB) could see more final salary pension schemes close as a result.
According to Reuters: UK pensions body warns on accounting proposals
The overhaul put forward by the ASB would force pension schemes to calculate their liabilities much more conservatively than at present, which would add billions of pounds to pension liabilities, the pensions industry has warned.
Analysis conducted on behalf of the NAPF showed the ASB proposals could double the reported liabilities of some final-salary schemes, which offer members a guaranteed income in retirement.
At a time when many final salary pension schemes are being closed, it’s perhaps the government paid more attention to how to support the pensions industry, rather than further damage it.