Home Business News FTSE 350 pension deficit rises while COVID-19 lockdown eases

FTSE 350 pension deficit rises while COVID-19 lockdown eases

by LLB Editor
3rd Aug 20 3:08 pm

Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed companies increased from £90bn at the end of June 2020 to £103bn on 31 July. Liability values rose by £13bn to £970bn at the end of July compared with £957bn at the end of June. Asset values were £867bn (unchanged since the end of June).

Charles Cowling, Chief Actuary, Mercer, said: “Pension scheme deficits worsened again in the last month and compared to 12 months ago, as market turmoil continues. We may have reached the limit of the easing of lockdown measures ahead of any vaccine for coronavirus becoming available, and globally the outlook remains bleak with coronavirus cases increasing. In the UK many sectors are still operating in crisis mode and some experts predict it will be 2024 before the UK economy returns to normal. Meanwhile, the economy is expected to shrink by over 10% this year due to the winding down of the furlough programme and unemployment could get close to 10% by year end.”


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