Talking Point: Larger reserves needed?
The Dutch pensions regulator, De Nerderlandsche Bank, has suggested local pension funds may in future need to hold larger surplus reserves to ensure their liablities can be met. But is this an issue all pension funds should now be considering?
Most defined benefit pension funds in the UK are understood to be in deficit too, and anecdotal evidence indicates other DB schemes in Germany and elsewhere are struggling too.
So is larger reserves on top of liabilities the solution for the long-term, given recent market turbulence? Or could other solutions be applied to make sure benefits can be paid and DB schemes can remain open?
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