The huge falls in the stock market have really hit the FTSE100 pension liabilities. Ever since the controversial accounting regulation, FRS17, came into being, FTSE 100 companies have had a hard time showing any profits in their pension schemes, although they did collectively at the top of the boom.
Now they are £100 billion in debt which means the remaining defined benefit schemes are going to be closed, like Barclays.
Luckily for the Government, there is no FRS17 for the public sector. Here the unfunded liabilities run out into the far future with £100's of billions of debts. A far worse crisis than the private sector and one that the next Government will have to finally face up to.
Oddly there is a relatively easy solution to such a huge problem, shift the retirement age to 70.