THE TOTAL pensions deficit of FTSE 100 companies shrank by £17bn in the last year and now stands at around £73bn, according to research out yesterday.
Britain’s largest companies have spent £11.8bn paying down their deficits in the last twelve months, according to figures from Pension Capital Strategies (PCS) and JP Morgan Cazenove.
Charles Cowling, managing director at PCS, said: “More than ever before, pension liabilities are impacting corporate decision-making at boardroom level, forcing tough decisions to be made to reduce deficits.”
However, one in ten FTSE 100 firms still has pensions liabilities greater than the total market value of the company.
Just five of the UK’s top companies reported a pensions surplus in the last year, with insurer Old Mutual topping the table with 117 per cent coverage of its pensions liabilities.