Funding and Funding Alternatives

With most DB schemes we see, the immediate need is to manage the short term issues with the trustees, the Pensions Regulator and scheme members. This should, and will, involve more than a simple recommendation for a series of cash payments. Always remember, the company own the deficit, the members own the surplus. At JLT Employee Benefits, when considering funding level requirements, we take account of factors such as:
  •  The cash flow demands for the business; 
  •  Balancing pension debt against bank debt; 
  •  Analysts views; Tax relief implications; 
  •  Is it a private or public organisation; 
  •  Negotiations with members to limit accrued liabilities in excess of PPF support; 
  •  Immunisation of liabilities: alternative annuities/corporate restructure. 
A key element of our approach to building the pension funding strategy into the overall corporate strategic planning process is not to waiting for the results of the scheme valuation to drive the next phase of scheme funding.


Charles Cowling, FIA Director | T: +44(0) 161 242 5388 | E:

Robert Dales, FIA Director | T: +44(0) 779 909 4392 | E: