By Sophie Smith
Source: Pensions Age
Defined benefit (DB) pension schemes are no longer acting as a “drain” on sponsoring employers, Broadstone has said, after its analysis found that deficit reduction contributions dropped to £932m in Q3 2024 as funding improvements eased financial pressures.
Broadstone highlighted data from the Office for National Statistics (ONS), which showed that £932m of private sector and hybrid DB pension scheme deficit reduction contributions were made in Q3 2024.
The firm noted that whilst this marked a small increase compared to the £828m paid out in Q2 2024, it is still “substantially” lower than the historical average, with deficit reduction contributions totaling £3.1bn five years prior in Q3 2019, rising to as high as £6.2bn in Q4 2020 during the height of the pandemic.