Trustee prudence in defined benefit scheme funding can result in excessive caution in both investment policy and funding valuations.
This may lead to calls for the employer to contribute more money to the scheme. These are significant payments in many cases, and can interfere with business plans. Watch our short video to find out how to address this problem.
Employers with a scheme that is closed to new entrants or future benefits are particularly keen to reduce the ongoing business risks and manage the costs of providing those benefits.
Ultimately, the employer is responsible for delivering the defined benefits promised to members. But many employers struggle to exercise control over trustee decision-making.