Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Latest NewsPay & benefitsPensions

Final salary/defined benefit pension schemes set to return as top firms achieve pension fund surplus

by Greg Pitcher 8 Aug 2007
by Greg Pitcher 8 Aug 2007

Defined benefit pension schemes could make a comeback, it has been claimed after a report revealed the UK was emerging from its pensions-funding ‘black hole’.

The annual report by actuary firm Lane Clark & Peacock showed the FTSE 100 firms with an aggregate pension funding surplus for the first time in five years. Ken Willis, investment partner at Lane Clark & Peacock, told Personnel Today that this was “fairly representative of the UK as a whole”.

More than half of the FTSE 100 firms have closed their defined benefit schemes – where members receive a proportion of their final salary – to new members as they fought to limit their liabilities.

But Lane Clark & Peacock partner Bob Scott said: “I suspect we have not seen the end of defined benefit schemes.

He added: “I do not believe we will return to the days when people received a 60th [of their final salary for each year they were at the company] every year from the age of 60, but companies will find other ways to offer security to employees.”

Willis added that defined benefit schemes where members receive a proportion of their career average salary were on the increase.

There were £20bn of pension funding surpluses among FTSE 100 firms in mid-July 2007 and just £12bn of deficits. This compares with an overall deficit of £36bn the year before.

The main reason given for the upturn in fortunes was the soaring value of UK equities. The average FTSE 100 firm has 57% of its pension scheme funded by equities, with one scheme 81% funded in this way.

This left many schemes at risk from a return to deficit following a downturn in the stock market, Lane Clark & Peacock warned. The firm also pointed out that an increase in life expectancy of just one year would add £12bn to the pension liabilities of the 100 firms.

Avatar
Greg Pitcher

previous post
Fewer companies offer financial-related bonuses to senior executives
next post
McDonald’s gives fast food chain staff in China a pay rise of more than 12%

You may also like

Employees going into office just 1.5 days a...

15 Aug 2022

PwC drops 2:1 degree class requirement

15 Aug 2022

Graduate and apprentice salaries shoot up in war...

15 Aug 2022

Personnel Today Awards 2022 shortlist: Excellence in Public...

15 Aug 2022

Hiring boom set to slow as employers come...

15 Aug 2022

Are you a ‘quiet quitter’?

12 Aug 2022

July saw highest number of job adverts for...

12 Aug 2022

Transport sector recruitment ‘should be overhauled to improve...

12 Aug 2022

Liz Truss comments on Civil Service dismissed as...

12 Aug 2022

Hot summers, hot desks – employment law advice...

12 Aug 2022
  • 6 reasons why work-based learning is better than traditional training PROMOTED | A recent Fortune/Deloitte survey found that 71% of CEOs are anticipating that this year’s biggest business disrupter...Read more
  • Strengthening Scotland’s public services through virtual recruiting PROMOTED | This website is Scotland's go-to place for job seekers looking to apply for roles in public services...Read more
  • What’s next for L&D? Enter Alchemist… PROMOTED | It’s time to turn off the tedious and get ready for interactive and immersive learning experiences...Read more
  • Simple mistakes are blighting the onboarding experience PROMOTED | The onboarding of new hires is a company’s best chance...Read more
  • Preventing Burnout: How can HR help key workers get the right help? PROMOTED | Workplace wellbeing may seem a distant memory...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+