FTSE 100 pension deficits estimated at £73bn despite funding push

FTSE 100 pension deficits have remained high at a combined £73 billion despite a 200% increase in funding since 2008, while liabilities have increased to £434 billion, according to consultants Pension Capital Strategies (PCS).

Deficits have decreased by £17 billion from last year's £90 billion, but there has been a rise in the number of pension schemes representing a material risk to businesses, according to PCS. It said 10 FTSE 100 companies had disclosed pension liabilities exceeding their equity market value – more than twice as much in the cases of British Airways, BT and Invensys.

Charles Cowling (pictured), PCS managing director, said: ‘Despite the significant increase in deficit funding, we estimate the pension deficits for FTSE 100 stand at £73 billion as at 30 June 2010.’

FTSE 100 pension deficits have remained high at a combined £73 billion despite a 200% increase in funding since 2008, according to Pension Capital Strategies’ (PCS) annual report, while liabilities have increased to £434 billion from £278 billion in 2009.

Last year saw total deficit funding of £11.8 billion, up 200% from 2008’s £4 billion.

The average pension scheme asset allocation to bonds is now 49%, the same as last year. This is up from 41%, in 2008, and 35% 2007.

Five companies reported a pension surplus while 80 companies disclosed deficits.