Pension black hole could be £40bn higher - papers 9 Nov

Industry experts say if these companies used more up-to-date assumptions the true size of the combined pensions black hole could be as much as £40bn higher, almost double the existing deficit estimates, says the paper. The disparity between the way companies make assumptions about longevity was disclosed this week in a report comparing BT and Royal Mail. BT uses data which assumes scheme members will on average die two years earlier than at Royal Mail. According to John Ralfe, the report's author, a two-year increase in BT's assumptions would increase BT's liabilities by £3bn to £41.2bn...