More firms unloading pensions

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THE number of companies offloading their pension schemes to insurers has accelerated sharply over the past six months and is likely to keep growing.

Actuarial consultant Lane Clark and Peacock has predicted that the pension buyout market will exceed £10billion this year, up from £2.9billion in 2007, while volumes will soar fourfold year-on-year.

The group – which analysed data from leading insurance firms – said at least 10 FTSE 100 companies were evaluating quotations to have some or all of their pension scheme liabilities transferred to an insurer for a one-off payment during 2008.

It added that the record £800million buyout of P&O’s pension scheme, looked set to be eclipsed this year, with seven of the quotations issued by insurers being for potential transactions of £1billion-plus.