Charity Benchmarking Report 2020
DB pension funding in the charitable sector
09 Jun 2020
The COVID-19 pandemic has placed charities under significant financial strain in the last few months, with fundraising and retail income particularly badly hit. Charities therefore need to conserve cash, but in many cases DB pension deficits have also increased.
On top of this, forthcoming regulatory changes are putting pressure on charities to pay off pension deficits quicker. A delicate balancing act is required between ensuring the sustainability of charities and funding higher pension deficits.
Some of our key findings are:
How should charities respond?
- Consider accessing COVID-19 flexibilities to defer pension contributions.
- Prepare for a new DB funding regime in 2021.
- Consider DB consolidation options.
Download our report to read the full findings. If you have any questions about anything covered, please get in touch.