Pension fund trustees need to worry about the solvency of their sponsoring employer, according to Mercer, the pension consultants. The warning comes despite pension funds appearing to be hit far less hard than might have been expected by the recent dramatic stock market falls.
On a purely accounting basis, pension funds for FTSE 350 companies were actually about £1bn in surplus earlier this month, despite a fall of more than 20 per cent in the value of equities over the past 18 months, Deborah Cooper, a principal in Mercer's retirement business, said yesterday.
