FTSE-100 publish pensions deficits
Almost half of FTSE-100 companies will show large deficits in their pension schemes as they begin applying the new pensions accounting standard, according to consultancy firm Watson Wyatt.
The total pensions deficit for the 49 FTSE-100 companies with year ends of 31 December 2001 is around £4bn, allowing for deferred tax, the firm said.
Robert Hails, a partner at Watson Wyatt, said: ‘These end-of-year reports are just now being published and at first sight some will make for gloomy reading.
‘But because FRS 17 is merely a snapshot of pension fund assets and liabilities using a specified approach, one has to question if it is the true picture.’