Pension fund deficits falling

PENSION fund deficits in Britain's biggest companies have fallen to their lowest in five years.

A study by the accountants Deloitte found the total deficit in final salary plans of FTSE 100 companies is now £21 billion.

It also estimates that a quarter of those schemes have a surplus, which it attributes to rising share prices and falling bond prices.

David Robbins, a pensions partner at Deloitte, said: "For the first time since 2001, we are starting to deal with schemes which have surpluses."