Pensions - Articles - FTSE 350 pension deficit narrows to GBP17bn


Mercer’s Pension Risk Survey data shows that the accounting position of defined benefit (DB) pension schemes for the UK’s 350 largest listed companies improved by £19bn in November, with the deficit falling from £36bn to £17bn.

 The improvement in funded status partially reverses the significant shift back into deficit in October, from a £3bn surplus in September. Liabilities have fallen from £795bn to £767bn due to an increase in corporate bond yields and a fall in market implied inflation. Asset values fell from £759bn to £750bn.The quoted funding level increased from 95% to 98%.

 Adrian Hartshorn, Senior Partner at Mercer said: “This month’s improvement in the funded status is welcome after the significant impact of the Lloyds High Court judgment in October. However, there is still a considerable gap to bridge before pension schemes can return to surplus. Trustees should remain prudent, seek to lock in gains and ask themselves how much risk they need to take to meet their funding requirements.”

 LeRoy van Zyl, DB Strategist and Partner at Mercer, added: “This is a meaningful reduction in the deficit but, as we approach the end of the year and as the Government attempts to get the Brexit Withdrawal Agreement through Parliament, Trustees should evaluate the potential impact of political uncertainty on their sponsor’s financial security and put themselves in a position to capitalise on de-risking opportunities as they arise.”

Back to Index


Similar News to this Story

DB transfer compensation estimated to drop further for Q4 26
Broadstone finds a reduction to redress levels due to rising bond yields. A gain expected in most cases meaning that no redress is payable as the cons
Lump sums taken early and spent – Budget fears make it worse
76% of people aged 55-64 say they have already taken the lump sum from their pension, according to AJ Bell research. 23% of people who aren’t doing an
Third-party cyber risk tops concerns for DB pension trustees
Seven in ten (70%) DB Pension trustees say third-party or administrator vulnerability is among the biggest cyber risks facing schemes. 60% have board-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.