Pensions turn to swaps and bulk annuities in 2007

Research from Mercer Human Resource Consulting shows despite a fall of 38% in the pension scheme deficits of the FTSE 350 companies, dropping from £87bn in 2005 to £63bn in 2006, it warns there has been little change in the relative risk levels over the last four years. The findings from Mercer’s report “Pension Scheme deficits and Trends – 31 December 2006”, which will be published later this month, point out over the last four years companies have tried to manage their pension risk by reducing the level of future benefits, either by cutting existing members’ benefits or by closing the s...