The combined deficit of FTSE 250 companies’ schemes stood at £12bn on 30 June 2009, £6bn more than a year ago.
PCS says companies in the FTSE 250 have reacted to the current economic climate in the same way as those in the FTSE100 by reducing pension scheme costs and risks. PCS is predicting that within the next two to three years the very large majority of private sector final salary pension schemes will be closed to all employees.
The report says the average scheme asset allocation to bonds has increased from 42 per cent to 49 per cent.
Charles Cowling, managing director at PCS says: “Perhaps the most striking feature of this latest research from PCS is the number of companies no longer providing final salary pensions to employees. Only 140 companies out of the FTSE 250 have any final salary pension scheme at all and just 92 of these companies are providing more than a handful of current employees with final salary benefits. Of those, only 20 companies are still providing final salary benefits to a significant number of employees”.
