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Are pension fund deficits now posing less risk to firms?
- Article from:
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UK Weekly Brief
- Article date:
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September 1, 2006
- Author:
- Anonymous
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Copyright informationCopyright Oxford Economic Forecasting Sep 1, 2006. Provided by ProQuest LLC. (Hide copyright information)
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The fall in world equity markets between 2000 and 2003, prompted many UK companies ' defined benefit pension schemes to go into deficit (relative to accrued benefit obligations). The actuaries Watson Wyatt estimate the combined pension deficit of FTSE 100 companies peaked at £90 billion in the spring of 2003. At end July 2006, Watson Wyatt estimate the deficit stood at £53 billion. This article looks at corporates' expenditure on pensions and how much of a burden this is proving? It finds corporates are currently spending 9% of their income on pension contributions, more than double the average in the 1990s.
How much are employers currently having to pay into employees' pension schemes?
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