FTSE 100 pension schemes in record surplus
FTSE 100 pension schemes boasted a record surplus at the end of March
The pension schemes of FTSE 100 companies had £40.4bn more than was required
to meet their liabilities at the end of last month, compared with a surplus of
£29.2bn in February.
The latest surplus is the biggest since companies began to monitor pension
scheme funding according to the accounting standard FRS17 in 2002, consultants
Watson Wyatt said.
The improvement was driven by increases in corporate bond yields during the
month, and came despite stock market falls, The Daily Telegraph
Chinu Patel, a senior Watson Wyatt consultant, said accountants used the
yield on AA corporate bonds to calculate the present value of pension payments
stretching over several decades.