UK company pension deficits getting worse: PwC
LONDON (REUTERS) - Britain's biggest companies may have to dip into their own coffers to cover deficits in final salary-linked pensions, or consider more riskier investments besides bonds, a study found.
Accountants PricewaterhouseCoopers (PwC) said the ability of the UK's top 350 companies to support their defined benefit (DB) pension obligations - which promise staff a pension based on salary - is still far below pre-recession levels.
And the situation didn't appear to be getting any better.
PwC said its Pensions Support Index, which tracks the overall level of support provided to DB schemes out of 100, had fallen to 74 - well below the 88 level achieved in early 2007.