Industry Background

Industry Background

The UK pensions industry has undergone a period of immense change. This has been driven by a number of key factors:  

• High levels of volatility in investment markets  
• Periods of falling stock markets   
• Reduced funding levels in Defined Benefit pension schemes   
• The introduction of Defined Contribution pension schemes   
• A changing regulatory environment, including the framework of accounting standards and government legislation.  

Due to the level of underfunding in many Defined Benefit pension schemes, employers are increasingly closing these schemes in favour of Defined Contribution arrangements for future member contribution. This trend has created a compelling need for a simple, comprehensive range of investment options that will adequately cater for member needs, as well as a flexible, robust and reliable pensions-administration service for member record keeping.