AIBU to wonder how Carillion have got a pension deficit?

[NotSuchASmugMarriedNow1]

What does that mean? Pension deficit? I thought companies weren't allowed to use pension funds for themselves after the Robert Maxwell problem?

A pension deficit means that they have a pension scheme with estimated future liabilities which exceed the value of its assets. It doesn’t mean they have taken the money, it could be that their investments have been badly managed or that their pensioners are not dying as young as previously expected (grim I know). When a Scheme is in deficit then the company needs to agree with the trustees a schedule to get it back into surplus within a few years.

Some info on this thread

www.mumsnet.com/Talk/am_i_being_unreasonable/a3139006-AIBU-to-not-understand-how-things-are-allowed-to-get-this-bad?msgid=74831524#74831524

But I think we'll have to wait for forensic accountants to pick over the company to find out exactly how far each of the possible factors applied to this specific case

Most final salary schemes are in deficit OP

Their funding levels are linked to investment conditions (returns on government bonds ) which are at historic lows

Nothing to do with taking money out

Ah ok. Didn't realise final salary schemes still existed.

It's been a while since I looked closely at pension rules but generally there was always a difference in the level of funds needed in a scheme to meet the current level of pensions being paid or to wind up.
Winding up and closing a scheme requires a higher level of funds than one that is still active and receiving investment returns.
Final salary schemes aren't very common now but most that do exist would have a shortfall if they were to completely wind up.

They don't for most people! Only those workers over a certain age kept their final salary pensions if you work for the public sector!

So if you're 56 you're still final salary pension younger than that average salary pension!

TeamRick most private sector employees would love an average salary pension and decent employer contributions