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Employers spend too much time on DB schemes, says Calor Gas FD

COMPANIES spend too much time on defined benefit (DB) schemes compared to defined contribution (DC) schemes according to Calor Gas finance director Adam Thompson.

Speaking at a Barnett Waddingham roundtable, Thompson drew attention to the discrepancy, Professional Pensions reports.

He said: “DB gets so much more focus than DC. Now I do care about the 230 active staff in the DB scheme but I have got another 1000 or so who are in the DC scheme.

“They get such a small part of my time versus the DB scheme because of this statutory requirement to do a triennial valuation every three year. All that stuff which goes with that is the reality,” he said.

He added: “I was a dinner not that long ago and some finance director quoted that 40-50% of his time was spent purely on pensions and almost all of that was on a DB scheme.”

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  • Peter Kane

    Its good to hear DC pensions getting some air time with FD’s such as Adam. Whilst DC does not directly hit the P&L Account or Balance Sheet the way a DB scheme does, a well run and well financed DC plan can bring real economic benefits to a corporate sponsor’s business – more productive staff, workforce managment, sucession planning, etc.