Barnett Waddingham’s annual research on FTSE350 companies highlights the impact defined benefit (DB) - or final salary - pension schemes are having on UK businesses. The key findings specific to the oil and gas sector include:
The oil and gas sector has had a tough time recently with falls in profits across the FTSE350 and it is unsurprising to see reductions in deficit contributions.
Mike Kennedy, head of oil and gas - pensions at Barnett Waddingham, commented:
“Whilst deficit contributions for the sector have fallen to the lowest level since our research began in 2009 they still represent a significant cost for FTSE350 companies.
“The oil and gas sector has had a tough time recently with falls in profits across the FTSE350 and it is unsurprising to see reductions in deficit contributions. This volatility is set to continue – especially with the added uncertainty of Brexit. The future funding needed to meet DB pension obligations is another unwelcome area of uncertainty magnified by the vote to leave the EU.
“FTSE350 companies play an important part in supporting their former employees in their retirement with payments of over £20bn being made to pensioners in 2015. A significant amount when compared to the c£90bn paid by the Government in State Pensions.”
For more information please contact:
Steph Admans, PR Manager, Barnett Waddingham, 01494 788112, firstname.lastname@example.org or
Maxine Curtis, PR Executive, Barnett Waddingham, 01494 788198, email@example.com