Pension Deficits

Pension deficits are a vital issue for many charities, particularly those in multi-employer schemes. CFG has been working to raise the profile of this issue and is working with key decision makers to improve the regulatory framework for charities.

You can read a synopsis of the key issues many charities are facing here.

In recent years the falling stock market has meant many charities have lost significant amounts of money from their pension funds, a problem which has contributed to many of them only narrowly missing negative reserves. A large pension deficit does not necessarily mean bad news. Charities will not have to find the whole deficit at once and pensions deficits can be made good over several, often many, years. A charity will only be insolvent if cash contributions to the deficit become unaffordable. Charities with deficits need to ensure that they seek professional advice on the deficit contributions that need to be made, as well as ensuring that their actual position is communicated clearly.

Letter to Steve Webb MP, Minister for Pensions - February 2013

CFG submitted a joint letter with NCVO and NAVCA to Steve Webb to raise awareness of the perilous situation which many charities find themselves in as a result of their pension schemes, particularly those charities in multi-employer defined benefit schemes. CFG outlined a number of potential regulatory improvements to the current system, and will be working with DWP and OCS over the coming months to take this matter forward.

Read the letter to Steve Webb MP here.

Response to consultation on Pensions and Growth - February 2013

CFG responded to this consultation jointly with NCVO and NAVCA, which sought to explore whether an additional duty should be placed on the Pensions Regulator to consider the long-term affordability of deficit recovery plans to the sponsoring employer.

CFG used its response to highlight the perilous situation faced by many charities as a result of defined benefit pensions schemes which they are unable to either leave or remain in.

Read the consultation response here.

The case for consultation on multi-employer pension schemes

CFG produced this paper outlining the problems associated with multi-employer pension schemes for charities, and making the case for why government should hold a full and open consultation on the issue.

Read the full paper here.

Employer debt regulations - multi-employer schemes - February 2012

Following the publication of the Government's response to the DWP Consultation on the Employer Debt Regulations, CFG wrote to the pensions minister, Steve Webb MP, raising concerns about how the current legislation around multi-employer pension schemes impacts on charities.

Read the letter to Steve Webb MP here.

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