DB deficits experience worst year on record

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Defined benefit schemes saw an increase of more than £170bn in total deficits in 2009, marking the worst year on record, Pension Capital Strategies (PCS) says.

PCS estimated all UK private sector pension schemes had a deficit of £212bn as at 31 December, representing a funding level of 81%. The firm says this compares with a £37bn deficit in the previous year, marking a 96% funding level. It also showed FTSE 350 companies had a £80bn deficit, with assets of £460bn and liabilities of £80bn. PCS managing director Charles Cowling says: "2009 has not been a good year for UK pension schemes. Indeed the increase of £170bn in the total deficit is the worst calendar year performance on record." He says despite strong investment returns in equi...

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