Pension News Pension Schemes Funding Position Improved 18438155
Pension schemes funding position improved
24 January 2008 / by None
Mercer has said that FTSE 350 pension schemes now have an aggregate funding level of 97 per cent and a deficit of £13 billion, which represents a £37 billion improvement since December 2006, Citywire reports.
John Hawkins, principal at Mercer, commented: “Given the high levels of volatility witnessed in the markets in the second half of 2007, it is encouraging to see that FTSE 350 pension schemes remain well funded on aggregate – especially when compared to the equivalent position at the end of 2006”
However, PriceWaterhouseCoopers have warned against making investment decisions in light of corporate bond figures, stressing that these improvements may be temporary and could be hiding further risk, according to the news provider.
In related news, Mercer has said that Pension schemes must capitalise on the next three months and consider ten factors to help reduce the amount they pay to the Pension Protection Fund (PPF) over the next two years.
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