Defined pension schemes in deficit

EIGHT defined benefit pension schemes closed down last year and more closures are expected by year’s end – with as many as 75% of schemes in deficit, according to the Pensions Board.

The representative body for the pensions industry said yesterday – at the launch of its 2009 annual report – that despite good investment returns evident “for almost all” schemes last year, 75% of defined benefit schemes were still in deficit at year’s end.

It added that in many cases that deficit is substantial; ultimately meaning that the returns seen last year didn’t claw back the losses seen in the previous two years.