To read this content please select one of the options below:

When is a promise a strategic liability?

Nicholas Terry (University of Edinburgh, UK)
Phil White (University of Edinburgh, UK)

Employee Relations

ISSN: 0142-5455

Article publication date: 1 June 2000



Employers offer pension plans for two main reasons: paternalism and skills market competitiveness. Recent changes in legislation and business practice have prompted the scrutiny of the underpinnings for such a management tradition. Identifies several relevant factors that derive from: field work undertaken by the authors; the Pensions Act 1995; and recent changes to corporations tax. It is argued that what has emerged is a sharply focused trade‐off, relating to the asset and liability characteristics of employer‐based pension schemes. This questions the sustainability of all types of pension plans, and thereby has a place in strategies affecting financial planning and business development.



Terry, N. and White, P. (2000), "When is a promise a strategic liability?", Employee Relations, Vol. 22 No. 3, pp. 272-281.




Copyright © 2000, MCB UP Limited

Related articles