Transferred pension scheme liabilities 'to increase in value'

The value of transferred pension scheme liabilities is likely to rise during 2010, new research has concluded.

According to a study by MetLife Assurance, the majority (66 per cent) of trustees investing their personal wealth in this area predict the value of transferred UK pension scheme liabilities will increase by over ten per cent this year.

Included in this figure is 11 per cent who expect their worth to be up by a quarter compared to 2009, while more than half of respondents said they will be looking into asset risk hedging over the next two years, in addition to 45 per cent who noted they will consider a pension risk transfer over the same period.

When questioned on risk, 81 per cent stated the longevity of pension schemes was their number one concern, followed by pitfalls relating to investment.

Commenting on the findings, chief executive of MetLife Assurance Dan DeKeizer said the results ’demonstrate that trustees are increasingly focused on looking at ways to de-risk their pension scheme in order to secure members’ benefits’.

The National Association of Pension Funds recently said its upcoming Accounting Summit will focus on improving the way pensions are valued on firms’ balance sheets.ADNFCR-2318-ID-19696470-ADNFCR