Royal Mail pension deficit:Possible rise from £2.9bn to £5bn

[POSTMAN]

http://www.royalmailchat.co.uk/08/news1042.html

According to new calculations reported in telegraph.co.uk today by Independent pension consultant, John Ralfe who bases his estimate on data available from the Royal Mail's March accounts,Royal Mail's pension deficit could rise from £2.9bn to £5bn by the end of September.

As of March the Royal Mail had pension assets of £23.9bn and liabilities of £26.8bn, giving a deficit of £2.9bn. However, by the end of September Mr Ralfe estimates the value of its assets will have fallen to approximately £21bn, with liabilities amounting to £26bn, giving a £5bn deficit.

The £23.9bn figure comprised; £11bn of equities, £10bn of bonds, property of £2.7bn and £200m held or invested elsewhere.

Estimated liabilities at the end of September of £21.1bn are based on a 15pc fall in equities to £9.5bn, bonds down 10pc to £9bn, and a £200m fall in property to £2.4bn. Other investments are assumed to have remained unchanged at £200m.

The estimated figure reflects ongoing turmoil in the stockmarket, but won't include the shares bloodbath seen earlier this month. But for the fact that the fund shifted £4bn out of equities and into bonds last year, the numbers would have been even worse.

The country's 200 largest corporate pension schemes had lost more than £45bn in value since the end of August, due to the sharp stockmarket sell-off.

Mr Ralfe said "Pension deficits have opened up in the last few months. Trustees should be asking the employer for extra cash to plug the deficit, which will mean some tough talking"


Source http://www.telegraph.co.uk/finance/pers ... -Mail.html

[baldrick]

£2.9bn deficit? I thought RM were telling us it was £6bn.
So an increase to £5bn is still less than that.

[pickaname]

Their own fault...shouldnt have taken a pension holiday. Corporate theft when all is said and done.

[DGP1]

Can we not just ask GB for a few billion because our board made a mistake and as the big banks can get it so why can't we

[guvenor]

maybe if we were a private company and g brown bought into rm ha f****** ha
they would through cash at us i mean hes gotta protect his investment