Deficits

Jack Jones talks to LCP’s Bob Scott about the consultant’s 20th annual survey of pensions at FTSE100 firms

Defined benefit (DB) s179 deficits continue to fall despite a drop in gilt yields, research from the Pension Protection Fund (PPF) finds.

This week, respondents tell PP to stop deficit-watching, have no problem with NEST members using its default, and ask if DC members suffer from a lack of attention.

The constant commentary on scheme deficits serves no constructive purpose according to Buzz respondents. Eight of ten said the practice had no use, while just one in eight said it had some merit.

A rise in equities failed to halt increasing deficits at the UK's biggest companies as corporate bond yields took a negative turn, research from Mercer shows.

A shortage of AA corporate bonds is leading to inconsistencies in the way FTSE350 companies calculate defined benefit (DB) deficits, Hymans Robertson says.

The aggregate pension deficit of companies on the FTSE100 has hit £43bn, despite strong returns on assets and employer contributions of almost £22bn over the year, says LCP.

Pendragon has seen its defined benefit (DB) deficit fall £23.5m in the first six months of 2013 after favourable scheme assumptions, its interim results show.

Gilt yields buck the trend of previous months and fall during July increasing UK corporate deficits by £50bn, research from Xafinity finds.

Consumer packaging firm Rexam has seen its UK defined benefit (DB) pension scheme move from deficit to surplus in the first half of the year, its interim results show.