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Thursday
Jul292010

Whisky Company Takes Drastic Measures to Sort out Ailing Pension Fund

One area I have been paying particular attention to in the news over the past couple of years concerns the state of various private pension funds.  As time has gone on it has become clear that the deficits being experienced by these companies have only got larger.

This is why I was interested to read about the unusual steps taken by one company in particular, to try and close the gap it has in its own private pension fund.  The drinks group Diageo has focused on using barrels of whisky to help make the gap smaller.

This is an innovative solution that has been agreed to be used over the space of the next fifteen years.  The idea is that the whisky will be used as an asset and its value will be used to reduce the amount of the deficit the company has in its pension stocks.  The company has also come up with a plan to add more in the way of funds to the pension plan over an extended period of time.

In the past I think this method of bolstering pension funds would have been seen as being quite unusual.  But now more and more private companies are looking for ways to reduce the deficit they have in their private pension schemes.  I feel we could see more similar plans being undertaken in the near future too.

If you fill in a tax return each year and you have concerns about the income you are receiving from a private pension (or may be receiving in the near future), contact us at St Matthew now for professional tax advice.

 



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