Towers Watson are reporting that plans to repair deficits of pension schemes with actual valuations this spring have been derailed. 

For a scheme with a March/April 2015 valuation, the contributions being paid by the employer would have to rise by about 30% in order to get the scheme on course to clear the deficit by the date agreed upon. 

If the contributions do not see a 30% increase, the date by which the plan would be fully funded against its target would have to be pushed back approximately two years.

HR experts explain that over the course of the last three years, investments have performed strongly but lower bond yields have increased liabilities. 

“Typically, cash deficits will be about where they were three years ago: the significant sums that employers have paid into their pension schemes have only allowed them to tread water.”

Some employers, of course, will increase their contributions but some scheme sponsors will want to resist this increase.  No word from the Pensions Regulator about if there will be consequences for resisting the increase, or if there will be incentive to comply.