22 October 2016

  |  CBI Updates Team

News, Report

Addressing DB pensions sustainability

Over the past decade – despite record contribution levels - the defined pensions environment has grown ever more challenging.

Addressing DB pensions sustainability

The CBI has long highlighted the difficulties posed to many businesses by DB pension commitments. Businesses want to see action to ensure a well-regulated system that is focused on the long-term, not artificial pressure driven by an approach to scheme calculations that risks damaging growth and pensions.

Brexit has thrown these challenges into even sharper relief and our paper focuses on what can be done to help companies manage the real costs of these schemes, including:

  • Flexibility in funding plans within an effective regulatory system
  • Modernising inflation indexation
  • Addressing the negative spiral created by a “glits plus” approach to valuing schemes
  • Unlocking pension scheme investment in more illiquid assets – including infrastructure.
     

Click here to read our policy paper

The CBI's pensions proposals were reported in the Financial Times.