In 2009 I wrote about the ICAEW's defined benefit pension scheme:
"The ICAEW have finally realised that the current arrangement, whereby subscriptions are increased each year to fund the pension black hole, is unsustainable. Therefore the ICAEW is going to cancel the final salary (defined benefit) pension scheme (closed to new members since 2000) next year (ie 2010)."
I noted then that the scheme had a £19M deficit.
Today Accountancy Age reports that the defined benefits pension scheme, which was closed on 30 June 2010, is expected to show a £22.6M deficit as of 31 March 2010 following the completion of an actuarial valuation.
It seems that funding contributions of £6M a year for three years, followed by £3.5M a year, will be made until the deficit is eliminated.
It is reasonable to assume that the long suffering members of the ICAEW will be expected to pay increased subscriptions to cover these funding contributions.