Final salary pension schemes face £24bn shortfall

The UK’s final salary pension schemes have fallen into deficit, according to an official report.

The Pension Protection Fund (PPF) found that employers’ defined benefit retirement funds had a combined shortfall of £24.1bn at the end of July.

A month earlier, the schemes had a surplus of £8.3bn. In June 2007 they were £83.3bn up.

Falling stock market prices as a result of the credit crunch have been blamed for the damage.

The PPF said: “Over the past year the negative impact of equities on scheme assets, combined with falling bond yields, has led to an overall worsening of the funding position.”

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