Pensions - Articles - FTSE 350 pension scheme deficits shrink despite inflation

 Tess Page, Mercer UK Wealth Trustee Leader, said: “The tragic situation in Ukraine is quite rightly at the top of the news agenda. Any comment will be out of date quickly as the situation is very fluid, but in the short term the conflict has not had a significant impact on the figures we see here for February.”

 Miss Page added: “It is too soon to know what the longer term economic impacts will be. However, it seems likely that they will include higher energy prices, further disruptions to supply chains, market volatility and liquidity pressures. Whilst UK DB pension schemes typically have very low direct exposure to Russia, it is the wider market fall-out that will test integrated risk management plans. As ever Trustees who have taken steps to understand and control their risk exposures should be better placed”.
 
 Mercer’s Pensions Risk Survey data relates to about 50% of all UK pension scheme liabilities, with analysis focused on pension deficits calculated using the approach companies have to adopt for their corporate accounts. The data underlying the survey is refreshed as companies report their year-end accounts. Other measures are also relevant for trustees and employers considering their risk exposure. Data published by the Pensions Regulator and elsewhere tells a similar story.