Pension trustees urged to stay cautious

A reduction in the number of corporate insolvencies should not encourage pension scheme trustees to become less cautious, it has been claimed.

PricewaterhouseCoopers (PwC) noted that even though there was another fall in the amount of firms failing in the final quarter of last year, businesses are still at risk.

It explained that there is often a jump in companies going under as the economy exits recession and Jonathon Land, partner and pension credit leader at the Big Four firm, urged those operating in the sector to stay prudent.

They ’have a responsibility to ensure they continue to monitor their sponsors’ strength and are open to different ways to optimise their schemes’ positions’, he remarked.

Data from PwC showed that there were 4,380 liquidations between October and December 2009, lower than the 4,672 that were seen in the previous three-month period.

The Confederation of British Industry’s Matthew Fell recently warned that businesses are going to experience a ’pretty bumpy’ road in the coming months as the economy continues its recovery.ADNFCR-2318-ID-19586559-ADNFCR