Home Business NewsBusiness JLT says FTSE companies face ‘difficult discussions’ over pension deficits

JLT says FTSE companies face ‘difficult discussions’ over pension deficits

1st May 17 3:24 pm

Here’s the facts

A few of the UK’s biggest companies are facing “difficult discussions” over the growing pension deficits the pension consultancy says.

According to JLT employee benefits over the past year the combined pension deficit firms on the FTSE 100 index has increased by 13 per cent.

JLT said that this could cause problems when the firms undertake pension re-valuations.

Big companies such as Lloyds bank and Tesco are among those firms that are re-valuating their pension schemes.

Charles Cowling a director at JLT said: “With many pension schemes now embarking on their triennial actuarial valuations and deficits likely to be much bigger than three years ago there are going to be some difficult discussions between companies and pension scheme trustees.”

He added that companies may be forced to plough more money into their pension schemes.

FTSE 100 companies, combined pension funds deficit is up from £53bn in 2016 to £60bn this April, and the UK deficit of all private sector pensions schemes is unchanged at £182bn, JLT found.

Cowling added that they: “remain high due to quantitative easing and record low interest rates.”

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