Aer Lingus may have its problems negotiating its €700m pension deficit with its work force but for many corporate pension funds rising markets and higher longer term interest rates are working their magic! Hat tip to the editorial team at FT Alphaville for flagging a staggering statistic from the JP Morgan Flows and Liquidity team…
The funding gap of the 100 largest US corporate defined benefit pension plans peaked in July 2012 at –$546bn and had declined to -$140bn at the end of January. The deficit of UK defined benefit plans peaked at -£293bn in July 2012 and had declined to a low of -£28bn in December.
Might be worth trawling through the pension deficit numbers of UK industrials of scale with multi-decade operational histories. Their balance sheet updates could provide a few nice surprises….and some awkward questions for Aer Lingus pension trustees.
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