UK - Latest FRS17 figures show three FTSE100 companies with pension deficits, while only one - Morrison Supermarkets - has a surplus.
GlaxoSmithKline’s annual report for last year shows an FRS17 deficit of £179m for its £3.7bn UK pension schemes.
GSK’s annual report and accounts explained: “The deficits under FRS17 reflect the different bases for valuing assets and liabilities compared with SSAP24.”
Analysts are concerned because the GSK schemes have a high equity weighting and a mature pension scheme membership. GSK has 87% in equities, 11% in bonds and 2% in other assets.
The Glaxo Wellcome Pension Plan has 13,500 active, 12,000 deferred and 13,000 pensioner members and the SmithKline Beecham Pension Plan has 8000 active and nearly 22,000 deferred and pensioner members.
Preliminary results released by Northern Foods for the year to March 31 show a net FRS17 deficit of £47m on its £475m scheme.
The £2.9bn J. Sainsbury Pension Scheme also revealed FRS17 figures which showed a net deficit of £257m for the year ended March 30.
The J. Sainsbury preliminary results said: “Whatever notional numbers are reported under FRS17, the board firmly believes funding decisions for the group’s schemes should be based on actuarial valuations, undertaken every three years.”
Meanwhile, Morrison Supermarkets’ final results disclosed a net FRS17 surplus of £4.7m on its £134.6m William Morrison Supermarkets Pension Fund for the year to February 3.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.