FTSE 350 pension deficits rose 24% in 2005

Companies that make up the FTSE 350, account for around half of UK occupational pension schemes in terms of fund assets, but projections for 31 December year-end accounts suggest that deficits rose from £75bn in 2004 to £93bn over the last year, despite strong equity market performance. Mercer’s research shows that although forecasts revealed pension asset values in the FTSE 350 companies rose by around £60bn to £422bn, scheme liabilities grew by a similar amount, therefore increasing the total deficit. Tim Keogh, worldwide partner at Mercer, says favourable investment performance did l...