RBS may have to plug £5.6bn pensions deficit if Scotland votes Yes

clock

Royal Bank of Scotland could be forced to plug a £5.6bn deficit in its pensions scheme if Scotland votes Yes on Thursday.

Analysis from Credit Suisse shows Britain's biggest companies would be left with a combined pensions funding deficit of about £100bn. They include Lloyds, which has a pensions deficit of £659m, and BP, which had a £1.3bn deficit at the last count in 2011. One pensions expert warned that some companies may have to go cap in hand to shareholders to raise the money, according to the Daily Mail. They said: "This would be an absolute disaster. Most of the big companies have billions of pounds of deficit - so they might have to split the scheme in two, one for Scotland and one for the UK...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

US election triggers $49bn in equity inflows while UK Budget barely moves retail market

US election triggers $49bn in equity inflows while UK Budget barely moves retail market

Lion’s share in US large cap

Eve Maddock-Jones
clock 26 November 2024 • 3 min read
Event Voice: Artemis' Cormac Weldon on the US

Event Voice: Artemis' Cormac Weldon on the US

Cormac Weldon looks into US markets.

Cormac Weldon, Head of US equities, Artemis Fund Managers
clock 18 November 2024 • 5 min read
Autumn Budget 24: Chancellor Reeves sets 20% IHT rate on AIM shares

Autumn Budget 24: Chancellor Reeves sets 20% IHT rate on AIM shares

Inheritance tax reform

Cristian Angeloni
clock 30 October 2024 • 1 min read
Trustpilot