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Article: A defining time for pensions: an academic research project, supported by funding from the Irish Accountancy Educational Trust, is exploring whether pension risk is accurately reflected in the markets and offers a systematic analysis of the issues surrounding the pensions debate in Ireland. Accountancy Ireland invited the researchers to share what they have found so far.(Financial Services)
- Article from:
- Accountancy Ireland
- Article date:
- December 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 Institute of Chartered Accountants in Ireland. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Extent of the Pension Crisis
The 'perfect storm' of negative equity returns and low interest rates in the early years of this millennium has resulted in the majority of defined benefit pension schemes experiencing a deficit whereby the liabilities of the scheme exceed the assets. In Figure 1, we profile the aggregate pension plan funding position of ISEQ-listed companies who sponsor defined benefit pension schemes. We note that over the period 2003 to 2007 the aggregate position of ISEQ firms has been one of continuing deficits. The deficit rose from 2003 to 2005 and subsequently declined from 2005 to 2007. As of 2007, the average deficit of ISEQ listed firms ...