"New analysis reveals that FTSE 350 firms risk missing out on £3bn in surplus value by buying out Defined Benefit pension schemes too early."
"If FTSE 350 companies adopt optimal endgame strategies, surplus available could rise from around £17bn to £20bn, benefiting shareholders."
"Under proposed changes, FTSE 350 firms may access up to £38bn more in surplus than current rules permit, increasing the total from £29bn to £67bn."
"Most FTSE 350 firms would benefit more from running their Defined Benefit schemes beyond a buyout funding level rather than buying out immediately."
FTSE 350 firms face significant financial risks from early buyouts of Defined Benefit pensions. Analysis shows that optimal strategies could increase surplus value from £17bn to £20bn. Upcoming legislation may allow schemes to access surpluses without full insurance buyout, potentially unlocking £38bn more than current rules allow. Despite this possibility, many firms may benefit from running their schemes beyond a buyout level, with 67% better off by not opting for immediate buyouts. Only a third would see the most value from a timely buyout.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]