DB schemes decline for FTSE 100 companies

There has been a “marked decline” in provision for ongoing defined benefit(DB) pension schemes run by FTSE 100 companies, a report from Pension Capital Strategies says.

The report, The FTSE 100 and their pension disclosures, says there has been a 15% decline in employee pension provision in DB schemes since July 2009.

There has also been "noticeable growth" in the number of FTSE 100 companies where pension schemes represent a material risk to the business.

A total of 10 companies disclosed pension liabilities which are greater than their equity market value, while 80 companies disclosed pension deficits.

However, companies are now doing more to tackle deficit. The report found the total deficit in FTSE 100 pension schemes has dropped from £90bn in June 2009 to £73bn in June 2010.

Read the report here