Struggle to fill pension deficits
24th April 2006 by Richard Lee
20% of the top 100 companies are unlikely to be able to eliminate their pension fund deficits over “any realistic timeframe”, according to a report by accountant KPMG.
It said 21% of companies in the FTSE 100 would struggle to close the gap between assets and liabilities from free cash flow within a decade.
The survey of 66 FTSE 100 companies, excluding financial companies such as banks, comes amid fears that pension deficits are rising and companies will struggle to clear them within the 10-year timeframe set by the pension regulator.
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