Pensions & benefits
Accounting for pensions 2018 (AfP) -
Our report, now in its 25th landmark year, reveals "FTSE 100 pension schemes go into surplus. Are they out of the woods?"
The FTSE 100 pension schemes reflect a year-end accounting surplus for the first time since the financial crash of 2007. The overall accounting position improved from 95% to 101% in 2017, turning a £31bn deficit into a £4bn surplus by the end of the year.
Since that time, the surplus has continued to grow, reaching over £20bn by the end of April 2018. But are they out of the woods?
"For the first time in years, FTSE 100 pension schemes have an accounting surplus. That’s good news, but funding deficits remain and company directors are under ever-increasing pressure to pay more contributions. They need to balance this demand against the risk of adverse consequences on distributable reserves, credit ratings or regulatory capital in light of the accounting surplus."
Phil Cuddeford, Head of Corporate Consulting
What's inside Accounting for Pensions 2018?
- Executive Summary: FTSE 100 schemes go into “surplus”. How?
- Section 1: IAS19 assumptions benchmarking - market practice is changing
- Section 2: The bigger picture
- Section 3: What are companies doing?
- Section 4: Balance sheets and P&L threatened by accounting standard changes
The second part of this report, released in autumn, helps you to prepare for the December 2018 year-end. This will explain the key issues and give you time to adapt ahead of the year-end.
- Accounting for Pensions: Part 2 - Autumn report - learn more
- Accounting for Pensions in 90 seconds with Phil Cuddeford - watch the video
- From the LCP media centre - read the press release
- A quick guide on preparing for the year end - read it here
- Do you want to get the best from your pensions accounting? Understand how here
- The LCP Treasury Model provides improved methods of setting accounting assumptions - find out more
Accounting for pensions 2018 - Autumn report
Thought leadership report
Read our Autumn report which reveals what senior corporate decision-makers really think about key pensions issues.Explore our findings
How we can help
We help companies navigate through the complexity of pensions provision.Meet some of our experts
We help both trustees and sponsors prepare for and deal with corporate change.Discover more