JLT's monthly fund index update for the month of November 2016

05 December 2016

JLT Employee Benefits (JLT) 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 30 November 2016, JLT estimates the total DB pension scheme funding position as follows:

At 30 November 2016

Assets

Liabilities

Surplus / (Deficit)

Funding Level

FTSE 100 Companies

£580bn

£740bn

(£160bn)

78%

FTSE 350 Companies

£656bn

£837bn

(£181bn)

78%

All UK Private Sector Pension Schemes

£1,401bn

£1,815bn

(£414bn)

77%

For comparison, the corresponding figures as at 30 November 2015 are as follows:

At 30 November 2015

Assets

Liabilities

Surplus / (Deficit)

Funding Level

FTSE 100 Companies

£543bn

£626bn

(£83bn)

87%

FTSE 350 Companies

£614bn

£710bn

(£96bn)

86%

All UK Private Sector Pension Schemes

£1,242bn

£1,507bn

(£265bn)

82%

Charles Cowling, Director, JLT Employee Benefits, said: ‘This last month has seen a further slight easing in deficits from the record heights of over £500 billion recorded at the end of August, as markets seem bemused by the fall-out from Brexit and the US election. However, deficits have still almost doubled over the last 12 months and there appears to be no relief in sight for companies with large pension schemes. Moreover, any current calm in markets may just be a temporary ‘eye-of-the-storm’ respite before the Brexit negotiations start in earnest. Furthermore, following this weekend’s Italian referendum there are still critical elections to be faced in France and Germany next year. The outcome of these events has the potential to destabilise markets – and there is the prospect of a hike in inflation next year as the impact of the fall in the value of sterling flows through to prices. 

‘As we rapidly approach the all-important year-end, at current market levels many companies’ accounts are going to show a marked deterioration in their year-end pension numbers. There will be instances where the pension scheme will represent a serious threat to the company’s balance sheet and, in some cases, its ability to pay dividends. There are going to be many finance directors hoping that the recent easing of bond rates continues a little further before the end of 2016.’

- ENDS -

Notes to Editor

Enquiries:

JLT Employee Benefits

Corinne Gladstone, PR Manager| T: +44 (0)20 7895 7705| E: corinne_gladstone@jltgroup.com

Smithfield Consultants:

Julia Cooke | T: +44 (0)20 7903 0631| E: jcooke@smithfieldgroup.com 

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 41 territories with some 10,600 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