Pensions Board advises trustees to urgently address funding shortfalls

Four out of every five defined benefit pension schemes are in deficit, with a number of them unlikely to survive under new statutory rules, according to the chief executive of the Pensions Board, Brendan Kennedy.

New regulations mean companies will have to address funding shortfalls in their schemes and produce plans for the board by the end of this year.

Schemes unable to meet those targets are likely to be wound up, with the youngest members suffering the most, Mr Kennedy said in his review of the board’s activities during 2011.