Analysing the impact of UK Defined Benefit Plans on Southern European companies
Our research considers the impact UK DB pension plans are having on the companies that make up the Spanish IBEX 35 and Italian FTSE MIB indices, and highlights how these companies are addressing the challenges posed by their DB pension obligations.
The analysis covers 20 multinational companies, with around £51.7 billion of UK DB pension liabilities between them.
Private sector DB plans are relatively uncommon in Spain and Italy, and so DB pensions may not attract the same attention as they do in the UK. However, DB pensions remain an important issue for companies in the UK. As well as the obvious impact on the company’s performance through the balance sheet and income statement, the level of contributions required and payments to the parent company are receiving a lot of attention.
In this report, we look at how funding levels have changed and consider developments three important areas:
- Assets and investment risk
- Benefit payments
- Cash contributions
Contacts
Isabel Coles
Head of International Consulting, MBWL International
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Email:
isabel.coles@mbwl-int.com
Tel: +44 20 3949 5710
Isabel Coles
Head of International Consulting, MBWL International
A multilingual expert in employee benefits for multinational corporates.
Isabel heads up MBWL International, advising multinational organisations on their employee benefits arrangements around the world, with a focus on corporate sales and purchases, accounting disclosures and the financing, risk management and design of benefit plans.
Her vast experience includes leading global accounting consolidations under international, UK and US accounting standards for multinational companies headquartered in the UK and overseas – with consolidations ranging in size from two to over 50 defined benefit plans.
She has advised both corporate and private equity buyers on the employee benefit considerations (including pension liabilities) associated with corporate sales and purchases in Europe and worldwide, from due diligence through to closing and subsequent integration work. Isabel has also undertaken many benefit audits and benchmarking exercises, including a 25-country audit for a company in the technology sector.
Other areas of Isabel’s expertise include reviewing and establishing international pension plans, advice on individual expatriate employee benefit packages and supporting multinationals in agreeing and implementing global governance approaches and policies for managing their employer benefit plans.
Isabel chairs the International Committee of the Association of Consulting Actuaries and is fluent in German and French.
Andrew Vaughan
Director, MBWL International
VIEW PROFILE
Email:
andrew.vaughan@barnett-waddingham.co.uk
Tel: +44 20 7776 2275
Andrew Vaughan
Director, MBWL International
Senior Partner, Barnett Waddingham
An industry leader with a prestigious career in defined benefit pensions.
Andrew advises a range of UK and international businesses on defined benefit pension issues including pension scheme funding, risk reduction exercises, pension benefit design, merger and acquisition (M&A) transactions and accounting disclosures.
Throughout Andrew’s illustrious, 35-year career, he has worked at board level with FTSE100 (or equivalent) organisations, becoming a trusted adviser to major multinationals. He has provided funding and related advice to clients across a range of scheme sizes and industries with pension scheme assets as high as £10 billion.
He has developed an innovative liability management strategy and has provided extensive corporate M&A advice and due diligence to international businesses investing in the UK.
An esteemed figure, he chaired both the Association of Consulting Actuaries and the International Association of Consulting Actuaries, as well as the Defined Ambition Industry Working Group.
Contacts
Isabel Coles
Head of International Consulting, MBWL International
VIEW PROFILE
Email:
isabel.coles@mbwl-int.com
Tel: +44 20 3949 5710
Isabel Coles
Head of International Consulting, MBWL International
A multilingual expert in employee benefits for multinational corporates.
Isabel heads up MBWL International, advising multinational organisations on their employee benefits arrangements around the world, with a focus on corporate sales and purchases, accounting disclosures and the financing, risk management and design of benefit plans.
Her vast experience includes leading global accounting consolidations under international, UK and US accounting standards for multinational companies headquartered in the UK and overseas – with consolidations ranging in size from two to over 50 defined benefit plans.
She has advised both corporate and private equity buyers on the employee benefit considerations (including pension liabilities) associated with corporate sales and purchases in Europe and worldwide, from due diligence through to closing and subsequent integration work. Isabel has also undertaken many benefit audits and benchmarking exercises, including a 25-country audit for a company in the technology sector.
Other areas of Isabel’s expertise include reviewing and establishing international pension plans, advice on individual expatriate employee benefit packages and supporting multinationals in agreeing and implementing global governance approaches and policies for managing their employer benefit plans.
Isabel chairs the International Committee of the Association of Consulting Actuaries and is fluent in German and French.
Andrew Vaughan
Director, MBWL International
VIEW PROFILE
Email:
andrew.vaughan@barnett-waddingham.co.uk
Tel: +44 20 7776 2275
Andrew Vaughan
Director, MBWL International
Senior Partner, Barnett Waddingham
An industry leader with a prestigious career in defined benefit pensions.
Andrew advises a range of UK and international businesses on defined benefit pension issues including pension scheme funding, risk reduction exercises, pension benefit design, merger and acquisition (M&A) transactions and accounting disclosures.
Throughout Andrew’s illustrious, 35-year career, he has worked at board level with FTSE100 (or equivalent) organisations, becoming a trusted adviser to major multinationals. He has provided funding and related advice to clients across a range of scheme sizes and industries with pension scheme assets as high as £10 billion.
He has developed an innovative liability management strategy and has provided extensive corporate M&A advice and due diligence to international businesses investing in the UK.
An esteemed figure, he chaired both the Association of Consulting Actuaries and the International Association of Consulting Actuaries, as well as the Defined Ambition Industry Working Group.