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
  • January 2015
01

FTSE 250 DB pensions could die out by next year

Open-access content Monday 18th January 2016 — updated 5.50pm, Wednesday 29th April 2020

All open defined benefit (DB) schemes amongst FTSE 250 firms could be extinct within a year, according to JLT Employee Benefits.

2


The firm cited difficult economic conditions, rising pension costs and "increasingly aggressive regulations" as the reasons companies struggled to keep their schemes open.

Latest figures showed total disclosed liabilities of these firms had increased to £81bn as at 30 June 2015, up from £75bn in the year before. 

Although many attempted to limit liabilities by closing schemes to new entrants or to existing members, JLT Employee Benefits said this "had little impact" as changes in economic conditions and increasing life expectancy caused the "spiralling growth" in liabilities.

The overall funding position of these schemes had "consequently worsened", with the total deficit at 30 June 2015 estimated at £12bn, which was £3bn more than it was the previous year.

Out of the 250 firms, only 28 disclosed a surplus in their most recent annual report and accounts, and 111 reported pension deficits. The remaining 111 firms had neither a surplus nor a deficit.

Charles Cowling, director at JLT Employee Benefits, said: "The ongoing spend and service costs on DB pensions before any allowance for deficit spending is a burden that many boardrooms would like to remove altogether. The impact on corporate decision-making for those companies with significant pension schemes liabilities should not be underestimated.

"With spiralling liabilities and yet more adverse regulations coming into effect from April, such as new tax rules and the end of contracting-out, we believe that the majority of FTSE 250 companies will cease DB pension provision to all employees within 12 months."

This article appeared in our January 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Local pension fund authorities draw up plans to lower costs

A group of 24 local authorities, 13 funds and 40 managers have come together to propose how to reduce fees when pooling investments.
Monday 25th January 2016
Open-access content
2

General insurers expect growth in claims value

Firms expect the value of general insurance claims to go up following the floods during December and January.
Monday 18th January 2016
Open-access content
2

Insurance taskforce outlines recommendations to combat fraud

The Insurance Fraud Taskforce (IFT) has come up with a series of proposals to help the sector tackle fraudulent claims, which involve different industries working together.
Tuesday 19th January 2016
Open-access content
2

Pension governance changes not improving member outcomes

Pension managers believe changes in governance over the past five years have not improved member outcomes due to increasing complexity and compliance requirements, according to a survey.
Tuesday 19th January 2016
Open-access content
2

Insurers join forces to tackle issues with driverless cars

UK’s major motor insurers are to work together to address some of the problems associated with automated technology in cars.
Wednesday 20th January 2016
Open-access content
2

'Rip-off' pension exit fees to be capped, says chancellor

The UK government has announced plans to cap “excessive charges” for people wanting to access their pensions and appointed the Financial Conduct Authority (FCA) to take up the task.
Wednesday 20th January 2016
Open-access content
Filed in
01
Topics
Investment
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

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