Pension scheme deficits up 50% since 2006

The Aon Hewitt index shows the schemes' deficits remained largely stable over the past month, increasing by £2bn to £71bn. If this rate of increase continues in December, 2010 will be the most stable year for pension scheme funding levels since 2006, Aon Hewitt says. However, the bigger picture is less encouraging as the typical accounting deficit for defined benefit (DB) schemes has increased by an average of 50%, from £55bn in 2006 to £87bn in 2010. Aon Hewitt predicts if DB schemes are able to switch the indexation of their pension benefits to the CPI rather than the RPI, defici...