Pension surpluses to continue in 2008

Last May the schemes of the UK’s largest 200 companies entered an aggregate surplus of £12bn, from a -£50bn year low in March, bringing the proportion of all UK pension schemes in surplus to almost half. Aon says schemes will benefit next year as employers have begun to increase cash payments into the plans as they approach their first scheme-specific funding valuation by the Pensions Regulator. However, the type of volatility seen in the equity markets last year could still affect schemes. Marcus Hurd, senior consultant and actuary at Aon Consulting, says: “Short term financial measures...