Report: Secure and stable pension planning
Key findings
- The overwhelming concern of corporates is to reduce volatility and surprises. The report offers some new and reconditioned ideas to help companies construct smooth and stable pension strategies.
- At the end of August, about half of the FTSE 100 had IAS19 pension surpluses, which total £50 billion. The other half had pension deficits totalling £20 billion, giving a net FTSE 100 position of a £30 billion aggregate surplus.
- Around 80 per cent of respondents believe that companies should mend their pensions roof while the sun’s shining.
- The challenge for companies with well-funded schemes is to ensure that their schemes don’t become overfunded with trapped surplus and that capital is used efficiently.
- Sex equalisation could hit FTSE 100 profits by £15 billion. Companies need to be aware of this funding and accounting risk – it’s been around for many years, but clarity and therefore crystallisation might now be just around the corner.