With the coronavirus causing havoc on the economy, we can expect defined benefit (DB) funding to be under scrutiny for some while schemes face a triple whammy of jumpy markets, lower interest rates and weakening employer covenants.

It seems likely that, even with substantial ongoing packages of government support, we will see greater employer insolvencies across multiple sectors, higher scheme deficits, and lower interest rates for the foreseeable future.

Our work with the DB Taskforce highlighted the limited choices and tough compromises that schemes and employers have had to make since the last financial crisis. Between closing deficits and company survival or growth; between former employees, and new and future ones.

It also highlighted the risks future economic disruption would make or accelerate, and the need for bolder action.

The government has promised change in the form of superfunds for some time, but has stalled its progress.

If the government wants to help schemes and stressed sponsors, now must be the time to press on with a regime that can offer a win-win for savers and employers.

Because, if things turn out to be even half as bad as the projections, having as many options available to provide savers with their full benefits is the only sensible course of action.

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