Three quarters of CFOs are struggling to work out their scheme’s end game
Most chief financial officers (CFOs) are unsure of the ultimate financial objective of their defined benefit (DB) pension scheme.
An increasing number of pension schemes are in surplus, but almost three quarters of CFOs (70%) are not sure what their objective is, according to research by investment management and advisory business Cardano.
Half (51%) of CFOs are seeking advice to determine the end game for their schemes, but a fifth (19%) are not seeking advice.
Sinead Leahy, Cardano Advisory’s head of corporate advisory services, said: “We are surprised by the level of uncertainty expressed by CFOs in our report. The findings clearly show a wide range of outcomes playing out a year after the crisis causing many to pause and think about their future pension strategy.
“While it is great to report the majority of schemes are in good financial health, many corporate sponsors clearly would welcome more support in determining the right endgame. There is a lot to think about and the market continues to evolve. Even those considering buyout need to manage this carefully in view of a key consequence of the crisis which is the imbalance which still exists between liquid and illiquid assets in pension scheme portfolios.”
