On Tuesday Barclays announced its results for 2014. It was a report full of headline grabbing numbers, but behind the disclosures around provisions for credit losses, PPI mis-selling and an FX probe, the bank stated that it will put £4 billion into its UK defined benefit pension scheme as part of a schedule of deficit repair contributions agreed with the scheme’s trustees. This is on top of the £2.3 billion that the bank has paid into the scheme since the previous actuarial valuation just a few years ago. To put Barclays’ pension contributions into context, the below chart compares the £4 billion to other figures disclosed in the bank’s 2014 results.
For many companies, the pension scheme is indeed the elephant in the room.