Almost a quarter (22 per cent) of FTSE 350 defined benefit (DB) schemes with rated sponsors face a 50 per cent chance of corporate insolvency before they reach buyout, according to analysis from Hymans Robertson.
The analysis, which was part of the companys annual FTSE 350 DB Report, added that almost half of schemes (43 per cent) with rated sponsors had a 33 per cent chance of corporate default before they reach buyout.
Hymans said the findings would act as a caution to schemes and stated that they should be putting in measures to mitigate the risk of a sponsor insolvency triggering early wind-up, forcing annuitisation and potentially a haircut to members benefits.
Hymans Robertson head of corporate DB, Alistair Russell-Smith, said: Provi…
Read the full article at: https://www.pensionsage.com/pa/22-of-FTSE-350-DB-schemes-facing-sponsor-insolvency-before-buyout.php