Assessmentism—an alternative to pensions funding?

Abstract

1.1. Occupational pension schemes in Great Britain and in many other countries are experiencing a very difficult period. For several years now actuaries valuing funded pension schemes have been faced all too often with the unenviable task of presenting to their clients the unpopular message that their pension schemes are going to cost more in the future than they did in the past. Furthermore, the increasing pressure to revalue pensions in course of payment and to replace withdrawal benefits by some form of preserved rights is either threatening employers with intolerable funding burdens, or is causing some departure from the established practice of fully funding retirement benefits.