UK’s pension regulator is calling on sponsors of large pension plans to put the health of their plans ahead of paying out high dividends to shareholders, writes Paulina Pielichata for Pensions & Investments.
The regulator made the comment in its annual funding statement, saying that “it was concerned about the increasing gap between dividend payments and deficit-reduction payments, and called on plan sponsors to reconsider the choice of valuation methods and investment strategies to counter these deficits,” she writes.
“In our 2018 (report) we are being clearer about our expectations of how trustees should approach their plan valuations. Recent corporate failures have shown the risks of long recovery plans while payments to shareholders are excessive, relative to deficit-repair contributions,” Anthony Raymond, interim executive director of regulatory policy at the TPR, is quoted saying.
More: Secure deal for a pension plan.

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