FTSE 100 pension deficit halves
Buoyant share market leads to dramatic fall
The combined black hole in the pension funds of the UK’s 100 biggest listed
companies has fallen from £110bn to £60bn in just two months, research by
Deloitte actuaries has found.
The drop was attributed to a soaring share market and easing of pressure on
bond markets due to government proposals to lend over longer periods.
In January this year, the story was completely different as deficits rose due
to demand from pension schemes for long-term bonds pushed up their price,
producing the knock-on effect of pushing up the cost of meeting pension
promises.