Exploring DB schemes internationally: Southern European companies with UK schemes

Published by Andrew Vaughan on

This survey relates to constituent companies of the Spanish IBEX and Italian FTSE MIB share indices that have UK subsidiary companies with defined benefit (DB) pension schemes.

The survey covers twelve Southern European companies with around £47.6bn of UK pension liabilities between them.

Our report analyses the contributions paid, levels of deficit and levels of risk within the schemes. Data has been taken from the latest available financial statements of the UK subsidiary companies, which are as at 31 December 2016 in most cases. Although the companies are not named directly within this survey, they are represented by the same number in each chart throughout.

Key findings

£0BN

combined deficit between twelve Southern European companies investigated

0%

average account for organisations' global DB liabilities

£0BN

of UK pension liabilities between 12 companies investigated

"The costs and risks associated with DB pension schemes are well-known within the industry. In most cases the parent companies in our survey are leading players in their industries and are able to absorb reasonably substantial pension costs. However, the impact upon performance and return on investments of the UK subsidiary companies can be more pronounced. Multinational companies should continue to focus their attention on pensions costs both at a global level and country level and consider taking action to address any imbalance that exists wherever possible."
Andrew Vaughan Partner, Corporate Consulting

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Exploring Southern Europe