We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

FTSE 100 pension liabilities may rise by £2.5 billion


Deloitte survey shows companies are worried about EU proposals

Article comments

The pension scheme liabilities of the FTSE100 could increase by as much as £2.5 billion because of stricter European Union capital rules, a Deloitte survey showed on Monday.

Three quarters of the FTSE 100 said the proposals, based on the Solvency II regime for insurers, would boost their gross liabilities by between 20 and 50 percent. This translates to an increase of between £1 billion and £2.5 billion each.

"Almost without exception, respondents are critical of the proposals," said Feargus Mitchell, head of Deloitte's actuarial and pension services practice.

"They believe that given the current climate, when pension deficits are already high and the economic outlook is uncertain, now is not the time to introduce new obligations that will incur further expenses and increase deficits."

The draft capital rules for the pensions industry could impose greater financial obligations on retirement schemes and force them to hold higher quality assets.

European internal market commissioner Michel Barnier, who is in charge of the overhaul, said earlier this month that Solvency II, widely expected to ratchet up capital requirements for insurers, won't be "copied and pasted" onto the pensions industry.

On Friday, British telecoms firm BT agreed to pay down a £4.1 billion deficit in its staff pension fund more quickly than originally planned.

Share:

Comments

FTSE 100 pension liabilities may rise by £2.5 billion
Risk

Hidden risks in the supply chain

Hidden risks in the supply chain

An unforeseen disaster can halt production and lead to share price falls and reputational damagemore ..


Taylor Wimpey CFO warns against UK withdrawal of EU

The group FD said "barriers would go up" and that would have an impact on Taylor Wimpeymore ..

RBS fined for IT failures after £25m trading losses

Hong Kong regulator fines bank £450,000more ..

Bank of England plans new round of cyber tests for banks

The Bank is to focus on individual banks’ security systemsmore ..

Energy risk: How data is eating up all the energy

Any failure in energy supplies to data servers can result in severe consequencesmore ..

Why BYOD needs to be on every CFO’s agenda

The Software Alliance explains why BYOD can be a legal nightmare for businessesmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

Advertisement

* *