Defined Benefit

A shortage of AA corporate bonds is leading to inconsistencies in the way FTSE350 companies calculate defined benefit (DB) deficits, Hymans Robertson says.

The aggregate pension deficit of companies on the FTSE100 has hit £43bn, despite strong returns on assets and employer contributions of almost £22bn over the year, says LCP.

Pendragon has seen its defined benefit (DB) deficit fall £23.5m in the first six months of 2013 after favourable scheme assumptions, its interim results show.

A Treasury proposal to create formal insolvency procedures for co-operatives could improve the organisations' access to the Pension Protection Fund (PPF), lawyers say.

Gilt yields buck the trend of previous months and fall during July increasing UK corporate deficits by £50bn, research from Xafinity finds.

Consumer packaging firm Rexam has seen its UK defined benefit (DB) pension scheme move from deficit to surplus in the first half of the year, its interim results show.

Lloyds Banking Group (LBG) has seen its defined benefit (DB) schemes move to surplus after substantial asset gains in the first half on 2013, its interim results show.

Sponsoring employers who use spare cash to reduce scheme deficits could see a huge hike in their scheme's Pensions Protection Fund (PPF) levy as a result, warn consultants.

DHL is proposing to close its final salary pension scheme at the end of the year and has yet to guarantee the future of its highest contribution defined contribution (DC) offering.

Diageo saw the deficit in its UK and Ireland defined benefit schemes fall from £1.1bn to £552m over the year to the end of June.