Pensions funding changes ‘essential’

RADICAL changes are needed to the funding criteria for defined benefit pensions in view of recent stock market developments, an expert warned yesterday.

Mercer actuarial consultant Joyce Brennan said minor changes proposed by the Pensions Board in its discussion document were totally inadequate.

If the issue was not addressed in a more radical way it would lead to countless numbers of defined benefit plans being closed to new entrants, she said.