Mercer’s survey found that the pension schemes of the FTSE 350 recorded a funding level of 92%, equal to a deficit of £33bn.
The figures from the consultancy’s quarterly snapshot of the UK pensions market come as the Confederation of British Industry (CBI) has called for calm over pension deficits, following fears that the panic they are causing investors is making the situation worse.
Deborah Cooper, principal at Mercer, said: “There will be circumstances where trustees are prepared and able to accept reduced employer funding over the short term.
“However, agreement to this might have to be supported by evidence that shareholders and other company creditors are also being asked to share some of the company’s pain.”
Mercer’s figure of a £33bn deficit compares to a £13bn deficit it reported on December 31, 2007.
John Cridland, deputy director-general at the CBI, said: “An overreaction to deficits could be a factor in sending some firms under, and leave the rest struggling for capital at a time when they need it most. We urge investors and trustees not to feed the fire.
“Instead they should step back from these spot valuations, and recognise that the deficits are a snapshot indication that does not reflect the full picture.”
The CBI has called for trustees to allow companies to manage payments over the economic cycle by agreeing longer recovery plans and for the Pensions Regulator to agree to this, thus complying with its statutory duty to protect the PPF.
It has also asked the government to amend rules that hinder firms with defined benefit schemes from adapting to the recession, in particular the section 75 rules on employer debt during restructuring.
Cridland added: “These measures could give businesses the breathing space they need to protect their pensions schemes and survive the recession.”
