Watson Wyatt reveals FRS 17 pensions deficit

Link: FRS 17 creates £70bn hole in UK plc accounts
Link: For more on FRS 17

According to figures filed to Companies House, the Watson Wyatt Holdings pension fund showed a deficit of £4.6m at the last actuarial evaluation of 31 March, on top of assets of £61.6m, according to the Financial Times.

Watson Wyatt declined to comment on the figures or give a more up to date calculation, but said: ‘We have good reason to believe that there is no material shortfall in our pension scheme.

‘The actuary of our pension scheme is currently in the process of carrying out an actuarial valuation as at 31 March 2002.’

Earlier this month Watson Wyatt, in a survey looking at the effects of FRS 17, revealed an accumulated pension deficits run up by UK companies totalling £70bn, with only around one in ten businesses with final salary schemes recording a surplus.

Watson Wyatt advises more than 50 of the UK’s 100 biggest corporate pension funds.

FRS 17 forces companies to account for pension assets and liabilities on the balance sheet and takes effect in parts until June 2003 when companies must comply fully.

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