A lot is changing in the world of defined benefit (DB) pensions. COVID-19 and the consequences for the wider economy are placing sponsors and schemes under strain. The Pensions Regulator has promised a “clearer, quicker, tougher” approach for scheme funding. Meanwhile, new consolidation vehicles have been launched, and schemes continue to grapple with ‘Guaranteed Minimum Pensions (GMP) equalisation’.
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Executive Summary
Our Willis Towers Watson Emerging Trends in Defined Benefit 2020 Survey explores how employers and trustees view the emerging issues affecting defined benefit pension schemes. The survey provides insights on how pension schemes are dealing with current challenges and their expectations for the future of DB pension schemes. Here are the key highlights from our findings:
In this report, we have focussed on the following four topics:
01
Despite the economic difficulties associated with the Coronavirus pandemic, ‘GMP equalisation’ is the top priority for schemes in the next 12 months.
02
We explore scheme decision-makers’ views on what challenges the ongoing pandemic and its strain on the economy have presented to their scheme funding and journey plan.
03
Schemes are seeking to address 'GMP equalisation' over the next 2-3 years. Almost three quarters seeking to complete back payments by 2022.
04
In the next 3 years, more professional trustees and schemes outsourcing more of their functions are expected to be the key trends.
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Emerging Trends in DB Pensions Survey 2020 | 4.1 MB |