UK - Nearly three-quarters of trustees plan to reduce their equity allocations, according to a survey by the Pension Corporation.

Additionally, more than one in five trustees expect to see cash contributions replaced with contingent assets, such as property, at a time when more than half estimate there will be a need to increase a sponsor's contribution.

David Collinson, co-head of business organisation at the company, said trustees were eager to use every tool available to combat deficits.

"Flexibility in how to pay off deficits should be good news for companies as they seek to retain liquid assets in a difficult economic environment, not least since there is likely to be a big increase in the amount trustees request from their sponsor after the next valuation," he said.

Findings released last month show that, of the survey's respondents, 11% intend to increase employer contributions by as much as 20%.

When asked how contributions would be made in future, 22% said it was likely to come in the form of contingent assets, a trend identified in the Pensions Regulator's annual report.

Additionally, fewer than one in four trustees welcomed the switch from the retail price index to the consumer price index, while 44% said the switch was unfair for pensioners.

Nearly 60% of respondents expect to be fully funded in the next 10 years, while 29% believe members will only draw minimum Pension Protection Fund benefits should their employer go insolvent before 2016.

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