25% of FTSE 250 could clear pension deficits in a year

Following research by the firm in April on pension deficits in the FTSE 100, the latest study shows a quarter of the 105 companies surveyed could pay off the debt in a year, while 49% could pay it off in three years by using discretionary cashflow, also called disposable corporate income. However the research points out around 28% of the companies surveyed lacked the necessary cashflow to clear their deficit and so would need to take action such as reducing capital expenditure or cutting back dividend distribution to try and clear the deficit over the medium term. KPMG says the study al...