Magazine article from our research archive:

Are pension fund deficits now posing less risk to firms?

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.

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