BusinessCompany NewsKPMG warns of showdown with pension trustees

KPMG warns of showdown with pension trustees

Companies face a possible showdown with pension trustees over more cash injection, a KPMG study warns

Six out of 10 FTSE 100 companies pay too much into their pension schemes but
they could still be facing demands for more cash injection from pension
trustees rattled by the market turnmoil,
KPMG’s
latest Pensions Repayment Monitor warns.

The study shows that, despite the market conditions, most of Britain’s top
companies are in a better position than in 2006 to pay off pensions. But market
conditions and recent regulatory guidance on mortality assumptions are likely to
prompt pension trustees to demand more funds.

A study released last week by actuaries Lane, Clark & Peacock showed FTSE
100 schemes had swung into a £41bn deficit last month from a collective surplus
of £12bn this time last year, the Financial Times reports.

However, KPMG found that close to three-quarters of FTSE 100 companies could
cover deficits in a single year using existing discretionary cash flows and
two-thirds were already paying more than they needed over a 10-year period.

Further reading:

Read
the Financial Review story

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor