Analysing the impact of UK Defined Benefit Plans on Southern European companies

Isabel Coles  |  4 February 2019

Our research considers the impact UK DB pension plans are having on the companies that make up the Spanish IBEX 35 and Italian FTSE MIB indices, and highlights how these companies are addressing the challenges posed by their DB pension obligations.

The analysis covers 20 multinational companies, with around £51.7 billion of UK DB pension liabilities between them.

Private sector DB plans are relatively uncommon in Spain and Italy, and so DB pensions may not attract the same attention as they do in the UK. However, DB pensions remain an important issue for companies in the UK. As well as the obvious impact on the company’s performance through the balance sheet and income statement, the level of contributions required and payments to the parent company are receiving a lot of attention.

In this report, we look at how funding levels have changed and consider developments three important areas:

  • Assets and investment risk
  • Benefit payments
  • Cash contributions

Isabel Coles

Email: isabel.coles@mbwinternational.com
Tel:+44 20 3949 5710

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Andrew Vaughan

Email: andrew.vaughan@barnett-waddingham.co.uk
Tel: +44 20 7776 2275

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