Chris Parlour explores smaller DB pension schemes and the associated headaches faced by business owner clients. Here he outlines everything advisers need to know about consolidating bijou final salary schemes
Running a smaller defined benefit (DB) pension scheme can be expensive. Moreover, cost pressures often limit the help and support members receive. That's why the Department for Work and Pensions (DWP) introduced measures to support the consolidation of DB pension schemes, giving the green light to superfunds and other innovations. There are significant diseconomies of scale involved in running a DB scheme. Many tasks that need to be performed, like undertaking triennial actuarial valuations, or preparing annual accounts, give rise to a significant amount of ‘fixed cost'. This affects ...
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