Lack of understanding on DB deficits could lead to 'scandal'

During his presidential address as the new head of the Faculty of Actuaries, Stewart Ritchie, director of pensions development at Aegon, says more work needs to be done to ensure employees and employers understand the implications of shortfalls in DB schemes. In his speech Ritchie says there are considered to be three things which need to be “aligned” in order to avoid a financial scandal: the legal position, financial position and consumer understanding of the scheme. But he says at the moment there are problems if the industry regards the legal position for a DB scheme for a solvent e...