UK pension funds of FTSE 100 companies are back in the black with a ₤15bn surplus – an improvement of more than £55bn on the previous year, resulting from pension funding regulation introduced in 2005, when pensions were in a £75bn deficit.

According to a newly released Deloitte study, the surplus was the result of investment returns of about 3.5% over the year and more cash injections from the employers.

Based on companies’ own expectations for 2008 stock market performance, Deloitte forecasts the FTSE 100 surplus to have risen to £30bn by the end of 2008.

‘Over 2008 companies will be looking to solve their pensions problems for good,’ David Robbins, a Deloitte pensions partner, said. ‘Options that include transferring pension schemes to new specialist pension buy-out companies are beginning to look viable.’

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