Low Yield Environment Creates Grave Evolution For DB Schemes
11 June 2012 (PLANSPONSOREurope.com) – A low yield environment within Europe has caused a “grave evolution” in the funding positions of defined benefit pension funds, according to the latest financial stability report from the European Insurance and Occupational Pensions Authority (EIOPA).
The report notes that within the Institutions for Occupational Retirement Provision (IORPs) sector a trend towards defined contribution schemes continues. Meanwhile a “grave evolution” in the funding positions of IORPs is already “very widespread” especially for such countries with defined benefit schemes. In these countries, particularly the UK and the Netherlands, recovery programmes are run by the respective regulators.