FTSE firms ‘face pensions under-funding’  September 3rd, 2010

Almost a third of FTSE 100 companies are facing problems with the under-funding of pension schemes, a new study shows.

Figures from KPMG show many of these schemes would need a cut in dividends and capital spending in order for them to be successful.

In many cases, more is being spent on reducing deficits than funding pensions, with £2 out of every £3 allocated to cutting shortfalls in 2009.

KPMG pensions partner Mike Smedley commented: "The key message to sponsoring companies, pension fund trustees and regulators is to maintain a long-term view and avoid knee-jerk reactions."

He added that pension provision needs to be secured in order for businesses to thrive in the future.

The Department for Business, Innovation and Skills recently revealed that 11 companies from the FTSE 250 had taken part in a government scheme to promote more informal learning and training at work.