UK pensions back in the black
Pension plans of FTSE 100 companies are back in the black with a ?15bn surplus
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
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
‘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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