02 August 2006
The black hole in the UK's largest company pensions shrank by
just £1bn during the past year, a report says.
The combined pension fund deficit of all FTSE 100 companies fell
from £37bn to £36bn in the year to July, said actuary
firm Lane, Clark and Peacock.
Record contributions from employers and stock market growth have
done little to close the pension deficit.
Nevertheless, FTSE 100 companies are on track to clear their
deficits by 2012, the actuary firm added.
Overall, out of 100 company schemes reviewed, just five were in
surplus: Associated British Foods, Gallaher Group, Johnson Matthey,
Old Mutual and Schroders.
At the other end of the scale, three companies - British
Airways, BAE Systems and ICI - were identified as having a pension
deficit equivalent to at least 30% of their market value.
