Company pension deficit total passes £100bn

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The Independent Online

A quarter of UK companies will struggle to pay back their current pension deficits over the 10-year period set by the Pensions Regulator, independent experts said today.

The total deficit for final- salary pension plans of all UK companies is more than £100bn, according to an analysis of deficits and reported earnings by pension actuaries at Deloitte.

New funding legislation introduced this year has put pension scheme trustees in a position of greater power when they negotiate future contributions with the company. The new funding requirements are likely to require companies to pay off deficits over no more than 10 years.