Many organisations don’t enjoy the funds to meet future or current pension payments for employees and time is tickingCharities’ enjoy an estimated combined pension deficit of £1.6bn,with many smaller organisations finding there is simply not enough cash to build aside to meet the cost of employees’ promised pension payments.
If they cannot close this gap between their obligations and their assets, the threat to their long-term financial sustainability is severe. Not only may the charity find it difficult or impossible to pay out pensions when the time comes, or the deficit can prevent it from merging with another charity,as organisations will not want to take on its pension liabilities.
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Source: theguardian.com