KPMG survey offers hope for pension deficits

KPMG survey offers hope for pension deficits

Half of FTSE 250 could pay off pension deficit in three years

Half of FTSE 250 companies could pay off their pension deficit within three
years from purely discretionary cash flow, while quarter could pay off their UK
pension deficit within a year, according to a study by KPMG.

Just over a quarter though lack any such free cash flow and would need to
take action such as reducing capital expenditure or cutting back dividend
distribution in order to clear their deficits over the medium term, the firm
said.

Alastair McLeish, head of pensions at KPMG, commented: ‘We would expect to
see that the next rank of companies below the FTSE 100 had less ability to meet
pension deficits than the largest ones, and the study has confirmed this.

‘However, whilst it was encouraging to see that so many could clear their
deficits so quickly from current discretionary cash flows, it remains an
interesting question whether it is in the long term interests of the companies
to do so,’ he added.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

5m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

9m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

1y Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

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

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor