JLT Pension Capital Strategies research: FTSE 250 pension scheme deficit improves by £2 million

The total deficit in FTSE 250 pension schemes at 30 June 2011 was estimated to be £6 billion, an improvement of £8 billion from the position 12 months ago, according to research by JLT Pension Capital Strategies.

The FTSE 250 and their pension disclosures research found that total deficit funding was £1.5 billion, up from £1.1 billion the previous year. Taylor Wimpey led the way with a deficit contribution of £122 million, but 47 other FTSE 250 companies also reported significant deficit-funding contributions in their most recent annual reports and accounts.

The research also found that only 82 FTSE 250 companies still provide more than a handful of current employees with defined benefit (DB) pension schemes. Of these, only 17 companies still provide DB pension schemes to a significant number of employees.

Additional findings include:

  • 21 FTSE 250 companies have total disclosed pension liabilities greater than their equity market value. For Premier Foods, total disclosed pension liabilities are more than six times its equity market value.
  • 25 companies disclosed a pension surplus in their most recent annual report and accounts; 120 companies disclosed pension deficits.
  • In the last 12 months, the total disclosed pension liabilities of the FTSE 250 companies have risen from £68 billion to £73 billion. A total of 20 companies have disclosed pension liabilities of more than £1 billion, the largest of which is Invensys with disclosed pension liabilities of £5.5 billion.
  • A total of 155 companies have disclosed pension liabilities of less than £100 million, of which 104 companies have no DB pension liabilities.

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