'The current regulation of final salary schemes is obstructing business reorganisation, often without making those pensions any safer. During a recession it is vital that firms are able to restructure and realign to strengthen the business and prepare for future growth.'

John Ball, Head of Defined Benefit Pensions Consulting at Watson Wyatt, said: 'Invoices for higher pension deficits will start to arrive next year as the first companies complete their funding negotiations. Three-quarters of employers think they will have to pay higher contributions immediately but that?s not the end of the story. Trustees and the Regulator will want deficits cleared more quickly if profits return, so this increase in contributions may not be the last.

'To avoid future surprises, more companies are looking for exit strategies. Nearly half of scheme sponsors expect to have transferred at least some pension liabilities to a third party in 10 years? time but only one in six expect all liabilities to be off their balance sheet. Companies facing drawn-out endgames may look at how to remove pension risks more affordably, for example by offering members enhanced transfer values.'

Story provided by Business Financial Newswire