The pension scheme deficit at UK companies in the FTSE 100 blue chip stock index widened to £43 billion as at 30 June, from £42 billion in the year-ago period, pension consulting firm LCP said in its 20th annual survey of FTSE 100 company pension schemes.
According to LCP, the rise is due to the fact that fund assets failed to generate enough revenues to meet their obligations. These figures indicate the effect of the repeated rounds of “quantitative easing” as part of which the UK’s central bank has been repurchasing bonds in an effort to fuel the country’s economic growth and thus contributed to a dramatic decline in the yield on the government’s gilts, which are a standard investment for pension funds.
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