Asset-backed funding for occupational pension schemes
By Paul Carney
Readers will be aware that occupational pension schemes providing benefits on a salary-related or defined-benefit (DB) basis — including ‘final salary’ pension schemes — have been in the news for several years.
This is because companies sponsoring such schemes have experienced increasing difficulty funding them. Funding a DB scheme is rooted in the fact that employer contributions to it are open ended: in other words, the employer underwrites the benefits provided under its DB pension scheme.
There are a number of consequences to this, and companies and their advisers have had to find more creative ways of funding DB pension schemes. Possibly the best example of such creativity in the last three to four years is employers’ use of so-called asset-backed funding (ABF) vehicles, with the best known being Diageo’s use, in summer 2010, of an ABF vehicle in which the asset was whisky — approximately 2.5 million barrels of it…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Earlier this month the Insolvency Service issued an updated draft statutory order regarding the provision of essential IT supplies which is planned to come into force on 1 October 2015.
The new Public Contracts Regulations 2015 are in force in England, Wales and Northern Ireland.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…