Fifty per cent of companies named in the FTSE 100 index are theoretically able to pay off their pension deficits within a year according to research from KPMG Corporate Finance.
Based on a comparative analysis of the deficits of the FTSE 100 companies against their extra cash flow estimates, KPMG’s Pensions Repayment Monitor suggests over 70% are able to clear pensions deficits within three years. However while 50% of companies can pay off deficits in one year, while around 20% of the FTSE 100 may need to think about talking additional measures in order to pay off their deficits over a longer time period. KPMG says with pension fund contributions effectively passing through a “one-way valve”, becoming irretrievable in the event of a surplus, the challenge most ...
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