Accounting for Pensions

Do proposed changes to accounting rules mean Armageddon for UK PLC

Proposals to change how companies account for surpluses in their pension schemes could knock £25bn off the balance sheets of Britain's biggest companies, a consultant has claimed.

A shift towards collective defined contribution (CDC) schemes is "unlikely" as the trend towards defined contribution (DC) plans continues, LCP says.

An increasing number of FTSE100 firms are seeking alternatives to straight cash funding, with 38 FTSE100 companies disclosing some form of security arrangements in their 2013 accounts, LCP research finds.

If all the FTSE100 companies still using the RPI inflation measure in their pension schemes were to move to using RPIJ, the combined pension deficit could fall by up to £20bn, LCP says.