Hard choices (TT Apr09 p16-18)

The economic downturn and a catastrophic year for equity markets in 2008 have pushed the issue of pension fund deficits firmly back on the business pages. Figures from different sources vary, but most suggest that since the effects of the credit crunch started widening last autumn, pension funds have moved from a position of overall surplus to one of deep deficit. The recession is the first major test of the new pensions framework introduced by the government in 2005.