CHANGES to accounting standards and growing irrecoverable surpluses are becoming a major concern to companies and shareholders, Pension Capital Strategies says.
Managing director Charles Cowling said such surpluses could represent wasted company contributions or reflect an investment strategy which is too risky.
The advisory firm’s analysis of the pension schemes of the FTSE100 shows 20 companies are now reporting an irrecoverable surplus – totalling £2.4bn.
PCS said British Airways has an irrecoverable surplus of £1,159m; Cable & Wireless £405m; Scottish & Southern Energy £211m; Thompson Reuters £119m and Rolls Royce £114m.
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