Pension plans given year to solve deficits

The Pensions Board has given company pension schemes running at a deficit until the end of this year to come up with a viable long-term survival plan.

The board, whose job it is to regulate occupational pension schemes, published a detailed set of funding rules for defined benefit schemes yesterday.

It noted that schemes will normally be given until 2023 to entirely clear their existing deficits, but that they will need to have a minimum capital reserve — typically 15% of the value of their holdings — in place by 2016.