July 16, 2009 / 5:31 AM / 11 years ago

FTSE pension hole over £300 billion

A trading screen at Natwest Stockbrokers shows share prices predominantly in red, indicating a fall in values, April 17, 2000. REUTERS/Ian Waldie

LONDON (Reuters) - The aggregate pension deficit at FTSE 100 companies has more than doubled since January to over 300 billion pounds, Deloitte said on Thursday.

Deloitte has estimated the total shortfall by simulating the calculations carried out every three years by pension trustees and which help set the contributions from corporate sponsors.

This figure tends to be far higher than annual deficit calculations carried out by the companies according to accounting standards.

“The continuing fallout from the recent financial turmoil means that pension deficits have risen to the highest levels ever seen,” said David Robbins, a partner in Deloitte’s pensions consulting practice.

“Many companies now face demands for huge contributions to their pension schemes in order to repay losses made on investment.”

Deloitte said it expects a significant increase in new techniques to make up the deficit, including the transfer of non-cash assets such as real estate, brands or other investments into the pension pot.

Reporting by Joel Dimmock

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below