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| Version 0 | Version 1 |
|---|---|
| UK pensions are 'back in the red' | UK pensions are 'back in the red' |
| (about 7 hours later) | |
| Pension funds of firms listed in the FTSE 100 stock index are back in the red after their biggest annual swing in funding levels since 2002. | |
| Actuarial group Lane Clark & Peacock (LCP) found that the pension funds had a net deficit of £41bn in mid-July. | |
| This compared with a £12bn surplus in mid-July 2007, which had been the first surplus for five years. | |
| But the report said that the position could have been far worse given the problems facing financial markets. | |
| 'Volatility' | 'Volatility' |
| The annual Accounting for Pensions report said that the credit crunch, equity market volatility and rises in expected inflation had all played their part in severe swings in funding levels. | The annual Accounting for Pensions report said that the credit crunch, equity market volatility and rises in expected inflation had all played their part in severe swings in funding levels. |
| No sooner have companies breathed a sigh of relief about returning to surplus but they are back to multi-billion pound deficits Bob Scott, LCP | No sooner have companies breathed a sigh of relief about returning to surplus but they are back to multi-billion pound deficits Bob Scott, LCP |
| The position could have been worse, but for companies pumping nearly £40bn into their pension schemes over the last three years and taking some steps to reduce risk. | The position could have been worse, but for companies pumping nearly £40bn into their pension schemes over the last three years and taking some steps to reduce risk. |
| Bob Scott, partner at LCP, said that the brief period of surplus until early 2008 had allowed some companies to take the opportunity to cut down on these risks. | Bob Scott, partner at LCP, said that the brief period of surplus until early 2008 had allowed some companies to take the opportunity to cut down on these risks. |
| But he was keen to give a warning about the future for these funds. | But he was keen to give a warning about the future for these funds. |
| "No sooner have companies breathed a sigh of relief about returning to surplus but they are back to multi-billion pound deficits," he said. | "No sooner have companies breathed a sigh of relief about returning to surplus but they are back to multi-billion pound deficits," he said. |
| "With a possible recession looming and the threat of further regulatory intervention, the outlook for continuing defined benefit provision seems rather bleak." | "With a possible recession looming and the threat of further regulatory intervention, the outlook for continuing defined benefit provision seems rather bleak." |