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Barnett Waddingham
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FTSE350: Impact of pension schemes on UK business

Published by Nick Griggs on

It has been a turbulent few years and our 7th annual report on the pension provision of the FTSE350 shows that 2016 was a particularly volatile year for the defined benefit (DB) pension schemes of the UK’s largest public companies. The EU referendum in June neatly split the year in two, with companies reporting in the second half of the year seeing a material increase in their DB pension scheme deficit, in contrast to the generally positive start to the year.

Overall, the aggregate IAS19 deficit for companies in the FTSE350 increased from £50bn to £62bn in 2016. However, it was not all bad news for these companies, with various reasons to remain optimistic. Our report summarises the data collected from over 200 companies within the FTSE350 that sponsor DB pension arrangements. Separate analyses have been carried out for FTSE250 companies, as well as companies within different industry sectors.


Key highlights

£12bn

rise of pension deficit of UK plc companies in 2016

0.7%

fall in bond yields would mean the pension deficit would exceed profits in 2019, if profits remain stable

15%

increase in benefit payments from FTSE350 companies in 2016


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FTSE350: Impact of pension schemes on UK business

About the author

  • Nick Griggs

    Nick advises a range of UK businesses on DB pension issues including risk reduction exercises, scheme funding, pension benefit design and accounting disclosures. He also acts as Scheme Actuary to a number of clients.

    View Biography

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