UK - Watson Wyatt has increased the funding levels on its own group pension funds from 86% to 96% over the past year.
The consultant’s report and accounts to the end of April this year show the total value of assets at £108.4m against liabilities of £113.3m.
The improved position was achieved by both investment gains and an increase in employer contributions from £3.8m to £10.4m.
Watson Wyatt’s UK defined benefit scheme, which accounts for the largest portion of assets in the group schemes, is more healthily funded. Its assets total £89.3m and cover 103% of liabilities.
The UK fund is still open to new employees on a discretionary basis.
The valuation was carried out by both current and former members using the projected unit method – Watson Wyatt is currently in the third year of transition to FRS17 accounting standards.
The valuation assumes an expected rate of return of 7.25% for equities, 5.2% for bonds and 6.5% for property.
General business figures for Watson Wyatt show that its turnover grew by £18m to £242m and that its profits grew by £11m to £68m.
Watson Wyatt managing partner Babloo Ramamurthy said it had been a difficult year for the firm’s human resources services and that a strategy review had led it to focus more on reward consulting.
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