UK pensions surplus of £15bn reported

28 December 2007 / by None
Gains of more than £15 billion have been reported among blue-chip pension funds, it has emerged.

The annual gain contrasts with a £75 billion shortfall that existed among the top 100 funds in a so-called pensions black hole during 2005, noted a research report by accountancy firm Deloitte.

A buoyant stock market during the first half of 2007, cash injections from supporting companies and a restructuring of the blue-chip pension schemes have contributed to their rapid turnaround, it has been suggested.

Deloitte pensions partner David Robbins commented that companies will seek a full resolution of their pensions' problems during 2008.

"Options that include transferring pension schemes to new specialist pension buyout companies are beginning to look viable," he said.

Critics believe that the gains posted by blue-chip pension funds highlighted in the study are superficial since the downturn in the stock markets caused by the recent credit crunch may see deficits return in the sector.

British Airways has contributed millions of pounds to help plug the funding deficit in pensions after contribution holidays and growing life expectancy since 2,000 led to the emergence of the problem, reports the Scotsman.

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