Defined benefit (DB) pension schemes continue to struggle in the face of falling share prices. BT is planning to overhaul its DB pension scheme after its deficits rose by an estimated £5bn this year to approximately £16bn. While Express Newspapers has reportedly warned staff of proposals to freeze its defined benefits pension scheme at the end of the year. British Airways' increasing pension deficit is reportedly becoming an obstacle in its all-share merger with Spanish carrier Iberia.
Back to Employee Benefits Report for Financial Directors – November 2008