FTSE 250 Final Salary Scheme Deficit Hits £12 Billion
29 June, 2015
According to JLT Employee Benefits, UK private sector defined benefit/final salary schemes continue to be heavily in deficit. As at 31 December 2014, the FTSE 250 defined benefit pension deficit topped £12 Billion alone, this is an increase of £5 Billion from the year before. 16 FTSE 250 companies have pension liabilities greater than their equity market values. These sobering statistics illustrate why defined benefit schemes are considered to be in terminal decline in the UK. As evidence of this, JLT note that in April Tesco took steps towards ending its defined benefit scheme to future accrual. In May Tata Steel also announced its plans to close its defined benefits scheme to new accruals and to change entitlements to existing members.