Pension deficits growing

Plummeting pension fund assets are being reported by some of the UK’s
largest companies.

Research from Credit Suisse First Boston (CSFB) finds many companies’
pension deficits are now almost equal to their total operating profits. CSFB’s
last survey found 91 of the FTSE 100 companies it surveyed had an aggregate
deficit on their pension schemes of £77bn, equivalent to 93 per cent of their
operating profits last year.

The deficit among smaller firms was even worse, with an aggregate of £13.1bn
across 161 companies – equivalent to 132.6 per cent of operating profits.
Factors contributing to the pensions ‘crisis’ include the global downturn in
equity markets, accounting regulations and rising life expectancy.  www.irsemploymentreview.com

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