FTSE 350 companies close pension schemes

Companies are closing pension schemes to future and even current employees as a result of economic conditions, rising pension costs and increasingly aggressive pension regulations.

JLT Employee Benefits says already more than a third of FTSE 350 pension schemes have no defined benefit pension scheme offering at all.

Charles Cowling, managing director at JLT, says he anticipates that the trend for pension liabilities to be transferred to insurance companies via buyouts will accelerate.

Over the past three years, the total disclosed pension liabilities of the FTSE 350 companies increased by £109 billion (€130 billion) to £542 billion.

A total of 14 companies disclosed pension liabilities of more than £10 billion, while 18 companies disclosed pension liabilities greater than the total equity value of the company. A further seven companies now have disclosed pension liabilities valued at over double the company equity value.

The total combined deficit of the FTSE 350 pension schemes, improved by £11 billion to £56 million over the last year.

This compares to a surplus of £13 billion four years ago despite a total contribution of £40 billion in 2012 – a result of difficult market conditions and increased liabilities.

©2013 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST