Despite over £11bn being spent on pensions deficits in 2009, almost a third (32%) of FTSE100 companies cannot ever meet pension scheme deficits from current discretionary cash flow, according to KPMG’s latest pensions repayment monitor.
“At first sight these figures look alarming,” said Mike Smedley, pensions partner at KPMG. “But the key message to sponsoring companies, pension fund trustees and regulators is to maintain a long term view and avoid knee jerk reactions. The most important thing in securing the future of pension provision is to secure the future of the business, not the other way round.”
Author: Pensions WorldPensions World is the leading monthly magazine for pensions professionals published by LexisNexis.