Pensions restructuring in UK Manufacturing
Avoiding the inevitable
"Most of the companies that continue to operate are now struggling to deal with pensions deficits which, even allowing for optimistic profit forecasts, may never be cleared."
UK manufacturing faces an uncertain future, facing challenges to compete in the global economy. Many companies traditionally employed large workforces entitled to valuable salary-related pension benefits. As these companies have slimmed down to achieve operating efficiency, their pension deficits have continued to increase. As a result, some of these companies have no realistic prospect of clearing their pensions deficit, which can often represent the largest single balance sheet liability.
Insolvency for the company, with the pension scheme being taken over by the Pension Protection Fund (PPF) seems inevitable; or does it?
How Deloitte can help you
Deloitte is able to assist manufacturing companies in all areas of such a transaction which can often be complex and must be closely and effectively integrated to ensure success. These complexities are overcome by having a clear picture of what the outcome might look like as well as an appropriate approach to not only the Regulator and the PPF but to all the other stakeholders who are required to formally agree to the arrangement.
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