Case study: Abbey focuses on defined-benefit pension risk reduction

As part of its review of pensions, Abbey's pension trustees agreed to give the employer more involvement in defined-benefit investment decisions. In exchange, the company "pre-paid" the scheme deficit using an escrow account. 

• Case study: Abbey focuses on defined-benefit pension risk reduction After financial services organisation Abbey was taken over by Santander in 2005, the company carried out a thorough review of its employee pension arrangements. 

Also

Companies employ escrow accounts to fund pensions The use of escrow accounts in relation to the funding of pension schemes is becoming more common. 

Survey: Defined-benefit pension schemes set out investment philosophies in Sips Our survey of the statements of investment principles (Sips) produced by 10 defined-benefit pension schemes reveals the range of approaches taken, policies on reviewing the statements and how compliance is achieved. 

RS Components' risk-sharing plan saves defined-benefit pension scheme To avoid closing its final-salary scheme, RS Components went to great lengths to get employee agreement for an innovative set of changes, including a mortality risk-sharing arrangement. The exercise saved the company from a potential doubling of its pension contributions.