Private sector pension deficits have stabilised as markets show resilience, but are still more than double what they were 12 months ago.
The UK's 350 largest companies ended January with an aggregate defined benefit (DB) deficit of £108bn on an IAS 19 basis, according to JLT Employee Benefits.
Consolidation of defined benefit (DB) schemes could cut pension costs by more than £500m a year, a JLT Employee Benefits report says.
The top 100 UK companies should forego 2017 dividend payments to open new avenues to scheme de-risking, JLT Employee Benefits has said.
The aggregate deficit of FTSE 350 defined benefit (DB) schemes more than doubled in 2016, causing funding levels to plummet 10% in 12 months.
Private sector defined benefit (DB) schemes saw a small improvement in their funding ratios in November after a year of market turmoil.
FTSE 350 scheme deficits rose by a modest £3bn over September after months of significant growth, which saw them almost triple since February.
The cost of defined benefit (DB) schemes sponsored by FTSE 100 companies could double from £7bn to £14bn per annum by 2019, according to JLT Employee Benefits.
FTSE 350 companies may need to reconsider whether to pay dividends after the total deficit has climbed to £207bn by the end of August.
Total deficits of UK defined benefit (DB) schemes have reached an all-time high for the sixth month in a row, according to JLT Employee Benefits.