U.K. plan sponsors expect to inject up to £75 billion ($142.45 billion) into their pension plans over the next 10 years, according to research issued today by Mercer Human Resource Consulting. Plan sponsors expect to increase their funding targets by an average of 10%, according to analysis of data from 160 of the firm's clients, said Tim Keogh, worldwide partner at the firm. The average funding target is likely to increase over the next 10 years to 100% of liabilities under FRS 17 and International Accounting Standards, from 92% currently. Most pension executives plan to fund their deficits within 10 years.
The increased funding targets are being driven by new U.K. legislation that increases the responsibilities of scheme trustees over plan funding, added Mr. Keogh.