FTSE 350 pension deficit falls to £152bn

Pension pot

The accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed organisations fell from £160bn in August 2016 to £152bn in September 2016, according to research by Mercer.

Its Pensions risk survey, which is based on analysis and projections of FTSE 350 organisations’ financial statements adjusted from their financial year end, also found that pension liability values reduced by £13bn, falling from £885bn in August to £872bn in September.

Asset values were £720bn as of 30 September 2016. This is £5bn lower than the £725bn recorded at the end of August 2016.

Ali Tayyebi, senior partner in the retirement business at Mercer, said: “The net change in deficits from the start to the end of September has been relatively small compared to recent months but it does buck the trend of the straight increase in deficits month on month since February. Even so, deficits have increased by over £100bn since the start of the year.”