FSA uses excess fees to fund pension deficit

In its Annual Report for 2005/06, the FSA says: "The income generated from fee payers is 1.2% more than net expenditure for the year and that excess has been applied to make an additional contribution to funding our pension plan deficit." The deficit on the FSA’s final salary pension scheme has increased from £80.3m in 2004/05 to £91.3m in 2005/06, and the regulator claims this is largely as a result of a reduction in the corporate bond yield (£37m) and increases in assumptions concerning inflation (£16.4m) and life expectancy (£5.6m). The FSA states: “The pension liabilities will not c...