JLT EB Funding Level Update November 2014

30 November 2014

Latest Monthly Update

JLT EB has updated its monthly index, showing the funding position of all UK private sector defined benefit (DB) pension schemes under the standard accounting measure (IAS19 / FRS17) used in company reports and accounts.

As at 30 November 2014, JLT estimates the total DB pension scheme funding position as follows:

At 30 November 2014  Assets  Liabilities  Surplus/ (deficit)  Funding Level
 FTSE 100 Companies  £541bn  £613bn  (£72bn)  88%
 FTSE 100 Companies
 £612bn  £695bn  (£83bn)  88%
 All UK Private Sector Pension Schemes  £1,234bn  £1,446bn  (£212bn)  85%

 For comparison, the corresponding figures as at 30 November 2013 are as follows:
 At 30 November 2013  Assets  Liabilities  Surplus/ (deficit)  Funding Level
 FTSE 100 Companies  £502bn  £567bn  (£65bn)  89%
 FTSE 100 Companies
 £565bn  £636bn  (£71bn)  89%
 All UK Private Sector Pension Schemes  £1,132bn  £1,296bn  (£164bn)  87%

Charles Cowling, Director, JLT Employee Benefits, comments: “Pension scheme deficits are broadly unchanged since last month, but the position is worse year on year due to the historic low level of bond yields we are currently seeing.

“The prospect of an imminent interest rate rise has all but disappeared with the latest report from the Bank of England. Indeed only this week the chief economist at the Bank of England, Andrew Haldane, commented that future interest rates might normalise at a level of just 3 per cent per annum. This would be bad news indeed for those companies hoping that a future interest rate rise will dig them out of their DB pension deficit hole.”

“Some relief for hard-pressed companies may be on the horizon with this week’s Autumn Statement and the introduction of the new flexible arrangements for DC schemes. The new rules, coming into effect next April, will significantly increase the attraction of DB to DC transfers and we could well see a huge increase in the number of individual transfers from DB schemes to DC schemes – as pension scheme members use the new flexibility to cash in their pension. Whilst this may not bode well for the long-term financing of retirement, it may give some relief to companies in the form of reduced DB liabilities.”

- ENDS -

At 31 July 2014

Notes to Editors 


JLT Employee Benefits: 
Jennifer Warner
+44 (0)1344 464 582

Smithfield Consultants:
Andrew Wilde
+44 (0)20 7903 0661  

Ged Brumby
+44 (0)20 7903 0674 

About JLT Employee Benefits 

JLT Employee Benefits is one of the UK's leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, Self Invested Personal Pensions (SIPPs) and Small Self Administered Schemes (SSASs) administration, flexible benefits, healthcare, benefit communication and financial education.

JLT Employee Benefits employs over 2,200 professionals throughout the UK and in 2013 had revenues of £172m in UK & Ireland.

Pensions and employee benefits companies within the JLT Employee Benefits group of companies include: JLT Benefit Solutions Ltd, Profund Solutions Limited, JLT Wealth Management Limited, JLT Investment Management Limited and Independent Trustee Services Limited. JLT Employee Benefits is part of Jardine Lloyd Thompson Group plc.


About Jardine Lloyd Thompson Group plc 

Jardine Lloyd Thompson is one of the world's largest providers of insurance and employee benefits related advice, brokerage and associated services. JLT's client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.

JLT is quoted on the London Stock Exchange and owns offices in 39 territories with some 9,000 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.


contact Charles Cowling
Director charles_cowling@jltgroup.com 0161 242 5388