Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2014
10

Low bond yields continue to put pressure on DB deficits, says JLT

Open-access content Wednesday 1st October 2014 — updated 5.13pm, Wednesday 29th April 2020

Combined defined benefit pension scheme deficits in the UK eased in September, but year on year the position worsened due to the continued low level of bond yields, JLT Employee Benefits has claimed.

In its monthly Pension Index, JLT estimated that FTSE 100 companies faced a total deficit of £66bn, while FTSE 350 companies faced a deficit of £76bn as it used the standard accounting measure, IAS19. Both had a funding level of 89%.

All UK private sector pension schemes had a combined deficit of £207bn and assets of £1,184bn.

In 2013, the combined deficit for FSTE 100 and 350 companies stood at £138bn.

JLT Employee Benefits director Charles Cowling said: 'There has been an easing in pension scheme deficits from last month due to a slight rise in bond yields, but year on year the position has still worsened due to the historic low level of bond yields we are currently seeing.

'There has been some hope that interest rate rises would be imminent and help relieve pension scheme deficits. But like the desert mirage, just as relief seems near at hand, the promise of higher interest rates leading to lower deficits and maybe even surpluses proves illusory.'

Cowling said the 'No 'vote in last month's Scottish referendum was good news for pension schemes with members both in Scotland and the rest of the UK.

However, he added that, the implications of devo-max or even more limited fiscal autonomy for Scotland could still be very serious for UK pension schemes and lead to significant additional administrative complications.

He said: 'This will not be welcomed by companies and pension schemes that already have to deal with the most complicated pension system in the world.' 

This article appeared in our October 2014 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Auto-enrolment to solve 'pensions paradox', says NEST

Auto-enrolment will help tackle the ‘pension paradox’ in the workplace that currently sees three-quarters of small employers not offer staff a pension scheme, a government-backed National Employment Savings Trust has said.
Friday 3rd October 2014
Open-access content

Enhanced annuity rates fall in volatile market

Enhanced annuities dropped by 5% to around £7,000 during the last 12 months to the end of September, revealed research by My Pension Expert.
Monday 6th October 2014
Open-access content

Retirement age could go up by six months every year

The retirement age could rise by an average of six months a year, encouraging older people to stay in work longer, under new government plans.
Wednesday 8th October 2014
Open-access content

NAPF urges government to create 'commission for pension savers'

The National Association of Pension Funds has called for the creation of an independent commission to oversee future legislation on saving for retirement.
Wednesday 15th October 2014
Open-access content

TPR plans new guidance following pension reforms

The new chair of The Pensions Regulator is to announce the organisation will provide new guidance to the scheme trustees as the government’s wide-ranging reforms are implemented across the sector.
Thursday 16th October 2014
Open-access content

Pension buyouts set to double, PwC predicts

The rate of defined benefit pension liabilities transferring to the insurance market is set to double, according to PwC.
Friday 17th October 2014
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from October 2014

ABI: motor insurance costs continue to fall

The cost of comprehensive motor insurance fell to £356 in the third quarter of this year, down £2 on the second quarter, according to the Association of British Insurers.
Friday 31st October 2014
Open-access content

'Marked improvement' in PPF scheme deficits

Pension schemes that are members of the Pension Protection Fund saw a ‘marked improvement’ in their deficit over the last year, according to an analysis published today.
Thursday 30th October 2014
Open-access content
2

Climate change experts urge flood-risk reduction plan

The government and insurers should collaborate on a plan to reduce flood risk, the official advisory committee on climate change has said after finding that the uptake of sustainable drainage systems (SuDS) in new development was low.
Wednesday 29th October 2014
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from 10

ABI: motor insurance costs continue to fall

The cost of comprehensive motor insurance fell to £356 in the third quarter of this year, down £2 on the second quarter, according to the Association of British Insurers.
Friday 31st October 2014
Open-access content

'Marked improvement' in PPF scheme deficits

Pension schemes that are members of the Pension Protection Fund saw a ‘marked improvement’ in their deficit over the last year, according to an analysis published today.
Thursday 30th October 2014
Open-access content
2

Climate change experts urge flood-risk reduction plan

The government and insurers should collaborate on a plan to reduce flood risk, the official advisory committee on climate change has said after finding that the uptake of sustainable drainage systems (SuDS) in new development was low.
Wednesday 29th October 2014
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Leading Insurer/Asset Manager – Pricing Actuary (Mortgages)

London (Greater)
Competitive
Reference
148750

Senior Consultant - Risk Settlement - Any UK Location - Up to £100,000 plus bonus

London / Manchester / Edinburgh / Remote
Up to £100,000 + Bonus
Reference
148832

Finance Transformation Actuarial student/Qualified Actuary

London (Central)
£50,000 - £75,000 depending on experience
Reference
148830
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ