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Pensions & benefits

Accounting for pensions 2018 - May report

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.  

Download publication

Related content

  • 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
  • The LCP Treasury Model provides improved methods of setting accounting assumptions find out more
  • Our 6-point review for pensions will identify where to focus your efforts and give you a clear framework for action - find out more

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