UK - Watson Wyatt has pumped £3.3m into its pension scheme in a bid to stem a soaring pensions deficit.
Watson Wyatt Limited Liability Partnership’s pension scheme deficit under FRS17 rules shot up by over 9000% in the last year – from £155,000 in May last year to more than £14m at April 30.
The scheme is worth £88.5m on an FRS17 basis.
The figures are revealed as Watson Wyatt publishes its first annual review since becoming a limited liability partnership.
But Watson Wyatt said the deficit according to its actuarial valuation – which takes into account assumptions about returns of assets within the fund – was only £3.4m.
It added: “The firm has agreed an immediate special contribution of £3.3m towards this funding deficit, with a further review in a year’s time.”
Watson’s scheme is 52.8% invested in bonds, 27.7% in equities, 14.6% in property and 4.9% in other investments.
Expected rate of returns for the asset classes are 4.8% for bonds, 7% for equities, 6.1% for property and 3.9pc for other investments.
The accounts also show that Watson Wyatt LLP achieved total pretax profit of £60.2m on a turnover of £225.3m in the year to April 30. This compares to a 2002 profit of £44.7m on a turnover of £190.5m.
Watson Wyatt senior partner Paul Thornton said: “The firm is in a healthy financial position.
“It is growing steadily and profitably year on year, improving its share of chosen markets, extending and deepening its capabilities geographically and building strong and lasting relationships with its clients.”
The average total remuneration of those who held partner status – excluding the highest paid member, Wyatt Trust – was £314,000.
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