05 Jun 2018

Report: Scottish Pensions Index

This Hymans Robertson report analyses 31 Scottish-based Plcs and leading private companies, and places their pension scheme obligations in the context of the businesses that support them over the course of 2017/18.

Key issues:

Despite the improvement in affordability and aggregate deficit of Scotland’s pension schemes over the latter stages of 2017, the volatility experienced in the first quarter of 2018 was a stark reminder that Scottish schemes are on average four times more exposed to the highs and lows of the equity markets than their FTSE 350 counterparts.
FTSE 350 companies predominantly expend more days of earnings on dividends than pension contributions whilst the reverse is true for the average Scottish company.
Scottish pension schemes remain largely affordable, however, the burden of pensions is significant for a number of Scottish companies.