Pension schemes of FTSE 100 companies have lost some £68bn in value since the start of 2002, accordi...
Pension schemes of FTSE 100 companies have lost some £68bn in value since the start of 2002, according to research from actuarial consultants UBSL.
This takes the overall pension fund deficits of these companies to £72bn at the end of December 2002, a fall of more than £13bn in the final quarter of the year.
According to UBSL, the forthcoming results season will contain a number of shocks for investors and further closure of final salary schemes may be imminent.
With falling yields on AA corporate bonds and the FTSE All-Share declining 23% since the beginning of 2002, UBSL said many final salary schemes have seen their funding positions fall by 23% over the same period.
This has led to a £72bn shortfall for these companies, a figure equivalent to the market capitalisation of the bottom 30 companies in the index.
Rob Dales, director at UBSL, said: 'The Government's recently published Green Paper has recommended new ways of funding schemes in order to protect members' interests. With markets remaining depressed and FRS17 accounting requirements highlighting funding shortfalls, companies face the stark reality of having to put more cash into their pension schemes.'
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