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01-Aug-08 11:30 [Pensions]
CBI: Pensions face problems from excessive regulation Excessive regulation on British employers providing defined benefit (DB) pension schemes could result in many being closed or bought out, it has emerged.
Richard Lambert of the Confederation of British Industry (CBI) warned on Wednesday of the problems company bosses faced from rules set down by the Accounting Standards Board and the Pensions Regulator.
Proposed policies by regulators require employers to carry worst-case costs of pension liabilities on balance sheets and tougher mortality assumptions.
Mr Lambert said that for policies to survive, companies should be afforded more "breathing space" as a more bureaucratic approach combined with current economic problems could potentially close schemes.
He continued: "Firms want to preserve their excellent schemes for employees, but the pressure on them is continuing to build.
"This spring, we have seen another assault on boardroom confidence."
On Tuesday, Reuters reported on the pound's sharp fall after the CBI announced a retail sales balance downturn, falling to minus 36 in July from minus nine in June.
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