The vast majority of pension scheme managers want to see the end of minimum funding requirement (MFR) in its present form, reports Pensions Week.

Pension Week's survey of over 1200 schemes found that while larger ones are reaching the 100% target a number of smalller funds are struggling and those that fail can expect to be hit hard with steep contribution rates. Having recorded an MFR valuation result of 92%, the £120m Imperial Home Decor pension fund has been forced to pay quarterly contributions of £815,000 until 2007. This has angered them. But the research shows that most pension schemes which have undergone an MFR review have easily passed the solvency test. Out of the 52 schemes which agreed to disclose their result, only three were below the 100% mark and many were easily clear.