Report: Accounting for pensions 2018

FTSE 100 pension schemes reflect a year-end accounting surplus for the first time since the financial crash of 2007. This report from LCP considers whether this growing surplus is bringing FTSE 100 pension schemes out of the woods.

Key findings:

• The overall accounting position improved from 95 per cent to 101 per cent in 2017, turning a £31 billion deficit into a £4 billion surplus by the end of the year. 
• LCP estimates that the surplus has continued to grow, reaching more than £20 billion by the end of April 2018.
• Fewer than half of FTSE 100 companies provide any form of ongoing defined benefit accrual to any of their UK employees.
• Changes to IFRIC14 accounting rules could worsen balance sheets by £50 billion. Companies need to prepare for this over the coming months.

The second part of this report will be released in autumn, helping you to prepare for the December 2018 year-end.

Supplied by REBA Associate Member, LCP

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