JLT EB Funding Level Update October 2014 

01 August 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 31 October 2014, JLT estimates the total DB pension scheme funding position as follows:

At 31 October 2014  Assets  Liabilities  Surplus/ (deficit)  Funding Level
 FTSE 100 Companies  £528bn  £596bn  (£68bn)  89%
 FTSE 100 Companies
 £597bn  £676bn  (£79bn)  88%
 All UK Private Sector Pension Schemes  £1,195bn  £1,404bn  (£209bn)  85%

 For comparison, the corresponding figures as at 31 October 2013 are as follows:
 At 31 October 2013  Assets  Liabilities  Surplus/ (deficit)  Funding Level
 FTSE 100 Companies  £505bn  £570bn  (£65bn)  89%
 FTSE 100 Companies
 £571bn  £644bn  (£73bn)  89%
 All UK Private Sector Pension Schemes  £1,142bn  £1,287bn  (£145bn)  89%

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.

“There had been some hope that interest rate rises would be imminent and help relieve pension scheme deficits. But like the desert mirage, just as relief seemed near at hand, the promise of higher interest rates leading to lower deficits and maybe even surpluses proved illusory as the Bank of England Monetary Policy Committee’s minutes from last week pointed toward a later rate rise. It now seems there is even the real risk that we could be seeing very low interest rates for many years yet.

“The No vote in the Scottish independence referendum was at least some good news for all those pension schemes with members both in Scotland and the rest of the UK. However, with the latest polls showing the SNP looking set for major gains in Scotland, there will be renewed focus on “devo-max” which could still be very serious for UK pension schemes and lead to significant additional administrative complications. This will not be welcomed by companies and pension schemes that already have to deal with the most complicated pension system in the world." 

- ENDS -

At 31 July 2014

Notes to Editors 

Enquiries: 

JLT Employee Benefits: 
Jennifer Warner
jennifer_warner@jltgroup.com 
+44 (0)1344 464 582

Smithfield Consultants:
Andrew Wilde
awilde@smithfieldgroup.com
+44 (0)20 7903 0661  

Ged Brumby
gbrumby@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.jltgroup.com/eb


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.jltgroup.com/

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