Another pension scheme in the red

BA is the latest in a string of firms to announce that it's pension fund is in serious defecit. The figures released today suggest that the funds shortfall is set to double to £2.1billion.

Despite the defecit the airline still plans to keep its final salary pension scheme, with no increase in staff contribution rates, and will make a £500m one-off payment if unions agree to new arrangements.

However, in recent months there has been a noticeable increase in the number of big employers having to take similar measures to improve the finances of their pension schemes. Among them have been Sainsbury's, London Underground, BAE Systems, the drinks firm Diageo, Rolls Royce, Reuters, Lloyds TSB and most recently the Bank of England.

So why have so many of our largest companies found such large holes in their scheme's finances. Is it due to a lack of contributions? No, if an employee doesn't contribute they don't get a pension. Is it due to people living longer and drawing more of a pension? Maybe, it certainly doesn't help. Or, is the fall in a pension fund's value due to a multi-million pound tax grab by the Chancellor? Hmmm.... let me think, I think it may well be.

Before Gordon Brown's tax grab, the only way a pension fund failed to pay up was if the firm went bankrupt, or it's owner nicked it. Now firms across the country are struggling to pay it's pensioners thanks to him. He has damaged busines, and put at risk millions of pensioners funds.

Not exactly a great advert for people to invest in a pension fund really, is it.