Pensions - Articles - FTSE350 pension gap grows by GBP4bn in February


Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes for FTSE350 companies increased from £41bn to £45bn at the end of February. The move was caused by an increase in liabilities from £806bn to £811bn, partially offset by asset values increasing from £765bn to £766bn.

 Maria Johannessen, Partner at Mercer, said: “It is disappointing to see the pension gap increase in February, having held steady in January. A £1bn increase in asset valuations wasn’t enough to offset a big rise in liabilities driven by an increase in market implied inflation alongside a small fall in corporate bond yields. The rising deficit reinforces how important it is for trustees to manage risk and shield themselves from market movements.”
 
 LeRoy Van Zyl, a strategic advisor and Partner at Mercer, added: “Funding level volatility is set to continue over an important few weeks for British politics, alongside an uncertain global economic environment. As the UK edges closer to the Article 50 deadline, it’s important both trustees and scheme sponsors take the time to fully understand the risk they’re running and are prepared to take action to ensure it falls within their risk appetite.”
 
 Mercer’s data relates to about 50% of all UK pension scheme liabilities and analyses 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. But data published by the Pensions Regulator and elsewhere tells a similar story.
   

Back to Index


Similar News to this Story

Sackers launch guide for trustees on pension transcations
Sackers have published its latest guide for trustees on buy-ins, buy-outs and longevity transactions. This guide is focused on supporting pension sche
Pensions Minister echoes climate warnings in Westminster
MPs from across the House of Commons have debated climate change and pensions. Pensions Minister Guy Opperman responded. Earlier he spoke of ‘kickstar
New tools allow pension schemes to deliver greater value
New tools helping pension schemes deliver greater value for money for millions of savers have been launched today (21 May) by the Cost Transparency In

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.