Threats posed by defined benefit schemes

DEFINED benefit (DB) pension schemes can pose the single biggest threat to a company's long term future, said Liam Quigley, senior consultant with Mercer.

Such plans have the potential to derail a company when they reach 20% to 30% of the market capitalisation of a business, he told those attending the group's annual conference.

However, Mr Quigley said better investment products have emerged that can help trustees and sponsors to control the investment risk.