JLT EB Funding Level Update August 2015

02 August 2015

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) used in company reports and accounts.

As at 31 July 2015, JLT estimates the total DB pension scheme funding position as follows:

At 31 July 2015  Assets  Liabilities  Surplus/ (deficit)  Funding Level
 FTSE 100 Companies  £546bn  £628bn  (£82bn)  87%
 FTSE 100 Companies  £618bn  £711bn  (£93bn)  87%
 All UK Private Sector Pension Schemes  £1,254bn  £1,513bn  (£259bn)  83%

For comparison, the corresponding figures as at 31 July 2014 are as follows:

 At 31 July 2014  Assets  Liabilities  Surplus/ (deficit)  Funding Level
 FTSE 100 Companies  £519bn  £581bn  (£62bn)  89%
 FTSE 100 Companies  £584bn  £656bn  (£72bn)  89%
 All UK Private Sector Pension Schemes  £1,162bn  £1,344bn  (£1782bn)  86%

Charles Cowling, Director, JLT Employee Benefits, comments:

“Even though Governor of the Bank of England Mark Carney has signalled that a rise in interest rates may be imminent, pension scheme deficits remain stubbornly high. Some rise in interest rates is already anticipated in market prices, so companies and pension schemes may be disappointed to see little respite in pension deficits for many months, even years yet. “This should further encourage companies and trustees to work together to manage down liabilities through targeted liability management exercises and end-game strategies, taking advantage of the new "Freedom and Choice" changes which give members the opportunity to transfer out their accrued pension and convert it into cash. However, pension scheme members will need to be careful to take heed of financial advice and ensure they understand the implications of giving up the valuable benefits provided by a DB pension arrangement.”

- ENDS -

Notes to Editors 

Enquiries:

Smithfield Consultants:

Fay Israsena

fisrasena@smithfieldgroup.com

+44 (0)20 7903 0633

Julia Cooke

jcooke@smithfieldgroup.com  +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. www.jltemployeebenefits.com

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.

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