Why do companies need a pension strategy?
Company pension schemes have a pervasive, long term material affect on all areas of a business:
- Pension deficits damage balance sheets, absorb cash and adversely affect strategy and credit rating.
- The Pension Regulator says the trustees should view the company as a bank would view a borrower.
- M&A activity is very difficult if there are unresolved pension issues.
- The design of pension benefits should be aligned with the company's HR and commercial objectives.
- Employees can become de-motivated if there is uncertainty regarding their pension.
- The pension scheme should be operated efficiently by competent, well-advised independent trustees who understand and manage all risks.
- Audit sign off may not be possible if there are unresolved pension issues.
Companies need a pension strategy which aligns with their commercial and HR objectives bringing certainty and stability through effective deficit management, adequate future funding, efficient operation and the management of employee expectations.
Working with our clients
At Deloitte, we work with our clients to develop their Pensions Strategy - how to finance their pensions schemes, what benefits they should provide and how to operate their pension schemes.
By bringing together the technical expertise of our pensions consulting and actuarial services, including our significant expertise in asset and liability modelling and investment strategy, with the breadth and depth of our tax, accounting, corporate finance and consulting capabilities, we are uniquely placed to deliver you complete solutions to one of the most complex issues facing businesses today.