Open-access content
Wednesday 16th September 2009
16 September 2009
Five big FM service providers have been included in a list of companies with the biggest pension difficulties.
Interserve, Kier Group, Carillion, Atkins and Mouchel were all in the top 15 list, compiled by Pension Capital Strategies. Researchers looked at the pension liabilities and pension deficits of the FTSE-250 companies, ranking them by looking at the ratio of pension commitments to market value.
Construction and support services group Interserve placed seventh in the researchers' list of businesses with the most significant pension liabilities. Interserve's total pension commitments were equivalent to 244 per cent of the company's equity market value (30 June). The company is also running a pension's deficit equal to 70 per cent of the company's market value.
Kier Group was ranked eighth out of 250. Its pension liabilities stood at 211 per cent of the value of the equity in the company. Its deficit was 9 per cent.
Pension Capital Strategies placed Carillion thirteenth in its list. The FTSE-100 firm's liabilities amounted to 169 per cent of the company's equity value. Carillion's pension deficit is also 9 per cent of its market value. However, at almost £1,700m Carillion has the fifth highest pension liability in absolute terms of any company listed on the London Stock Exchange.
Engineering and FM consultancy Atkins was number 14 in the list with its pension liabilities hitting 168 per cent of the equity market value. The consultancy's pension deficit has now reached 50 per cent of the market value of the business.
The fifteenth company on the list was consulting and business services group Mouchel. The group's overall pension commitments were equivalent to 168 per cent of the value of the equity in the business. Its pension deficit stands at 19 per cent.
Researchers found that 27 of the FTSE-250 companies have pension liabilities greater than the total cash value of the company. Four companies have pension deficits bigger than 50 per cent of their equity value.
Companies are addressing rising pension costs by closing defined benefit pension schemes. Nearly half of FTSE-250 firms no longer have a defined benefits scheme and only 92 are still offering such pensions to current employees.
Interserve is one of the companies which has taken the decision to close its defined benefits pension scheme. A spokesperson for the company told FM World: "Among the recent actions Interserve has taken to address the pensions deficit is the decision to close the defined benefit scheme, except for TUPE passport members, to future accrual."
A spokesperson for Atkins said that like many other companies it was "addressing a pensions deficit", but that it had put a plan in place in 2007 based on actuarial calculations.
No one from Kier, Carillion or Mouchel was available for comment.
Five big FM service providers have been included in a list of companies with the biggest pension difficulties.
Interserve, Kier Group, Carillion, Atkins and Mouchel were all in the top 15 list, compiled by Pension Capital Strategies. Researchers looked at the pension liabilities and pension deficits of the FTSE-250 companies, ranking them by looking at the ratio of pension commitments to market value.
Construction and support services group Interserve placed seventh in the researchers' list of businesses with the most significant pension liabilities. Interserve's total pension commitments were equivalent to 244 per cent of the company's equity market value (30 June). The company is also running a pension's deficit equal to 70 per cent of the company's market value.
Kier Group was ranked eighth out of 250. Its pension liabilities stood at 211 per cent of the value of the equity in the company. Its deficit was 9 per cent.
Pension Capital Strategies placed Carillion thirteenth in its list. The FTSE-100 firm's liabilities amounted to 169 per cent of the company's equity value. Carillion's pension deficit is also 9 per cent of its market value. However, at almost £1,700m Carillion has the fifth highest pension liability in absolute terms of any company listed on the London Stock Exchange.
Engineering and FM consultancy Atkins was number 14 in the list with its pension liabilities hitting 168 per cent of the equity market value. The consultancy's pension deficit has now reached 50 per cent of the market value of the business.
The fifteenth company on the list was consulting and business services group Mouchel. The group's overall pension commitments were equivalent to 168 per cent of the value of the equity in the business. Its pension deficit stands at 19 per cent.
Researchers found that 27 of the FTSE-250 companies have pension liabilities greater than the total cash value of the company. Four companies have pension deficits bigger than 50 per cent of their equity value.
Companies are addressing rising pension costs by closing defined benefit pension schemes. Nearly half of FTSE-250 firms no longer have a defined benefits scheme and only 92 are still offering such pensions to current employees.
Interserve is one of the companies which has taken the decision to close its defined benefits pension scheme. A spokesperson for the company told FM World: "Among the recent actions Interserve has taken to address the pensions deficit is the decision to close the defined benefit scheme, except for TUPE passport members, to future accrual."
A spokesperson for Atkins said that like many other companies it was "addressing a pensions deficit", but that it had put a plan in place in 2007 based on actuarial calculations.
No one from Kier, Carillion or Mouchel was available for comment.