Nine companies listed in the FTSE 100 index have total disclosed pension liabilities greater than their equity market value.
Just over half of the FTSE 100 (51 companies) disclosed a pension deficit, while 39 reported a surplus, research from employee benefit provider JLT found. The remaining 10 members, including the Scottish Mortgage investment trust, all reported no DB pension liabilities.
It adds that nine FTSE 100 firms have pension liabilities greater than their equity market value.
The firms are: BT, BAE Systems, Sainsbury, Centrica, Marks & Spencer, Royal Mail, Royal Bank of Scotland, Marks & Spencer, International Airlines Group. However, it is worth pointing out that the latter four of these names are running a surplus rather than a deficit, thanks to high funding levels.
Firms with big pension deficits, have been labelled the 'unexploded bomb in investment portfolios', posing a threat to company stabilities.
| Rank | Assets £m | Liabilities £m | Surplus/(Deficit) | Funding Level | |
|---|---|---|---|---|---|
| Evraz | 91 | 453 | 663 | (210) | 68% |
| InterContinental Hotels | 92 | 113 | 168 | (55) | 67% |
| Fresnillo | 93 | 13 | 20 | (7) | 66% |
| GKN | 94 | 2,901 | 4,405 | (1,504) | 66% |
| Sage Group | 95 | 21 | 43 | (22) | 49% |
| Shire | 96 | 368 | 786 | (418) | 47% |
| Mondi | 97 | 126 | 327 | (200) | 39% |
| Micro Focus International | 98 | 4 | 28 | (24) | 16% |
| Antofagasta plc | 99 | 0 | 84 | (84) | 0% |
| Sky | 100 | 0 | 34 | (34) | 0% |
25th October 2018
Pension TRansfer Specialists