The credit crunch has seen pension scheme funding of FTSE100 companies fall by more than £50bn in a year, Lane Clark & Peacock LLP (LCP) research suggests.
The firm’s 15th annual Accounting for Pensions report found UK pension schemes of blue-chip firms had a net deficit of £41bn as at mid-July 2008, a drop of £53bn from a £12bn surplus in July last year. LCP says the drop in funding, required to meet obligations to existing members, is the largest 12 month swing in FTSE100 levels since the introduction of modern pensions accounting methods in 2002. It says the credit crunch, equity market volatility and rises in expected inflation have caused severe swings in funding levels over the last year, and argues it emphasises the importance of asse...
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