Scheme funding proposals could cost £27bn - ACA

Based on a review of over 2,000 schemes, the ACA research found the proposals by the Pensions Regulator would mean 35% of schemes would have to pay more than a quarter of their free cash flow to meet the funding requirements. ACA’s research estimates the extra annual contributions across all schemes might be in the region of £15bn to £27bn, which is an increase of 50% to 90% on the employer contributions made in 2004. In its proposals, the Pensions Regulator suggests target levels of funding should be around 100% of Financial Reporting Standard 17 (FRS17) liabilities, and that recovery ...