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06-Aug-08 11:24 [Pensions]
Pension schemes take £41bn hit FTSE 100 company pension schemes have dropped £41 billion into the red after the effects of the credit crunch and stock market frailties, a report has said today.
Consultancy firm Lane Clark & Peacock (LCP) found that losses were over £50 billion down on a year earlier, when the companies held £12 billion in surplus a year.
The Daily Telegraph noted that leading pension experts had predicted the end of final salary pension schemes in the private sector, with the newest development of a black hole in the sector marking a "nail in the coffin" of the market.
A partner at LCP, Bob Scott, said that companies used their surpluses for buy-outs, financial swaps and other de-risking activity.
He continued: "Events of the last year demonstrate the importance of assessing and managing pension risks and being prepared to take opportunities when they present themselves."
Last week, Legal & General completed a buy-out of the Telegraph Media Group's defined benefit liabilities with the support of LCP for £12 million, Global Pensions reported.
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