UK - Engineering firm Smiths Group has ended its contribution holiday after an FRS17 valuation of its £2.5bn pension fund revealed a £150m deficit.
The company will now resume employer contributions of £30m a year.
The deficit was revealed in the group’s interim results to January 31, which adopted FRS17 calculations for the first time.
The inclusion of the FRS17 report contributed to a 1% drop in the firm’s half yearly profits to £180m.
But finance director Alan Thomson said that unlike other quoted companies, the funding of its pension scheme is not a “major issue”.
He said scheme finances were stable following its decision two years ago to place 60% of its assets in bonds and gilts and leave 40% in equities.
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.