Corporate rush to offload pensions adds to pressure on UK equities
UK pension funds are poised to further reduce their support for the London stock market as employers accelerate a push to lock in higher bond yields and offload tens of billions of pounds of liabilities to insurers.
Industry executives said 2023 is set to be a record year for such transfer deals for defined benefit pension schemes, which promise to pay employees’ retirement payments at a fixed level. Rising interest rates have boosted these plans’ funding levels to their highest in more than a decade.
This story originally appeared on: Financial Times - Author:Harriet Agnew
