Pension schemes hit £40bn surplus

The surplus, which represents the largest since Watson Wyatt began monitoring UK pension schemes’ funding levels in 2002, rose from £29bn in February. As recently as February last year, FTSE 100 companies had a combined pension deficit of more than £45bn. The actuary attributes the surplus to increases in corporate bond yields, although share prices dropped in March. Chinu Patel, a senior consultant at Watson Wyatt, says: "Accountants use the yield on AA corporate bonds to calculate the present value of a stream of pension payments that stretches over several decades. “The credit crun...