Thats the whole point thedude, it is the COMPANY that is responsible to fund WHATEVER is required.
It is effectively, an open ended cheque book, which many companies are now saying, is not sustainable.
The accounting standard FRS17, is being used as an excuse in many instances; much more significant, is Gordon Brown dipping his mits into the funds via taxing and the poor performance of the stock markets and fund managers over the past few years.
In my (humble) opinion, defined contribution pensions as they are structured at present are a non starter. They are sold on the undoubted tax benefits, whereby if you are paying higher rate tax, you claw back the whole of the 40%, but if you stop and work out how much you will receive back via an annuity, it is a pittance compared to the fund value.
If you take my original post as an example, with a fund value of £400,000, it would take (at 5% annuity rate) 20 years just to get the capital returned. In the meantime, that £400,000, has been earning interest (normally via gilts of around 5%), so effectively, the whole of the fund value, is going to the annuity provider.
The annuity providers would claim they are taking the risk. What risk at 5%?
You might as well put it under the bed!
Everything I have written should be accepted as a personal opinion. Approximations have been used, as I don't have access to detailed rates, I am not an advisor in any shape or form and therefore, no way should anyone consider this advice.