Property News · October 31, 2016

Size of deficit in defined benefit pension schemes drops sharply in October


Total deficit in UK’s 6,000 defined benefit funds improves by £60bn to £630bn, according to accountancy firm PwCThe size of the deficit in defined benefit pension schemes dropped sharply in October, according to a report on Monday.The total deficit in the UK’s 6,000 defined benefit funds improved by £60bn to £630bn, down from the record high of £710bn in August, said the accountancy firm PricewaterhouseCoopers. The improvement followed a recent rise in yields on gilts, or government bonds. But Raj Mody, PwC’s global head of pensions, said: “Slight improvements in gilt yields have contributed to the apparent deficit reduction, but liability measurement by gilt yields does not necessarily represent reality, given pension liabilities are mainly affected by longevity and inflation.” Continue reading…

Source : theguardian.com
Read more…Size of deficit in defined benefit pension schemes drops sharply in October

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