Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsEconomics, government & businessPay & benefitsPensions

Pension schemes drop more than £50bn in value over the past year

by Guy Logan 6 Aug 2008
by Guy Logan 6 Aug 2008

FTSE 100 companies’ pension schemes dropped more than £50bn in value over the past 12 months, a study has revealed.

The 15th annual Accounting for Pensions report, by consultant actuary Lane Clark & Peacock (LCP), found inflation rises, equity market volatility and the credit crunch caused a £12bn surplus in July 2007 to turn into a net deficit of £41bn last month.

Employers were “cushioned” by the use of the IAS19 accounting standard, which measures market conditions based on bond yields rather than gilt yields. In the past six months, bond yields have risen dramatically, reducing IAS19 liabilities by £40bn, which LCP says allowed employers to think the economic turmoil was not as bad as believed.

Bob Scott, partner at LCP, said the future was not looking pretty for companies that still used defined benefit pension schemes.

“With a possible recession looming and the threat of further regulatory intervention, the outlook for continuing defined benefit provision seems rather bleak,” Scott said. “Events of the last year demonstrate the importance of assessing and managing pension risks and being prepared to take opportunities when they present themselves.”

He told Personnel Today that HR professionals have a lot on their plates trying to maintain a sense of equality between older employees on defined benefit pension schemes, and new employees starting on defined contribution pension plans.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“They need to figure out how to educate and inform the rest of their workforce that is coming in, possibly with an inferior pension scheme, and keep them incentivised and rewarded so that there’s a level playing field across the whole workforce, which is a real challenge,” Scott said.

The report also said it expects more pension buyouts from the FTSE 100 firms, following recent moves by Lonmin and Friends Provident.

Guy Logan

previous post
McDonald’s to create 4,000 jobs across the UK
next post
Michael Page shares soar after takeover by Adecco is confirmed

You may also like

Company director wins £15k after being told to...

4 Jul 2025

Skills shortfall in construction threatens housing target

4 Jul 2025

MPs demand Home Office tightens visas to protect...

4 Jul 2025

It’s all about the Monet: how art transforms...

3 Jul 2025

Stop chasing quick fixes: return to the office...

3 Jul 2025

Asda hails major upgrade in employees’ benefits

3 Jul 2025

100% success for latest large-scale four-day week trial

3 Jul 2025

NHS 10-year Health Plan sets out vision for...

3 Jul 2025

Microsoft to cut 9,000 jobs globally as role...

3 Jul 2025

Decline in workplace deaths: falls from height remain...

3 Jul 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...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 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+