The Pensions Corporation does not rule out the possibility of flotation

The Pensions Corporation has rejected claims it is considering an initial public offering (IPO) in the near future and has said it plans to grow its business by working with trustees and sponsors.

A spokesman, however, did not rule out the possibility and said the Pensions Corporation, which insures pension fund payments, is looking to expand its business. He added the organisation was as likely to consider an IPO as any other business.†

An IPO is where an organisation offers common stock or shares to the public for the first time, often to generate the capital to expand.

Richard Jones, principal at consulting actuaries Punter Southall, said: “Pension Corporation has been trying to raise additional capital in the private markets for nearly a year now without much success and therefore it is not that surprising that they are looking at alternatives such as a floatation or trade sale.”

The Pension Protection Fund recently estimated the collective deficit of all the UK’s 6,400 final salary schemes stood at £158bn, with about 87% of the funds in deficit.

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