Pensions regulator may block dividend payments

Companies with high pension deficits may be prevented from paying dividends to shareholders, warns actuarial firm Lane Clark & Peacock (LCP).

In its 12th annual Accounting for Pensions Survey, LCP reported that the combined pensions deficits of FTSE 100 companies totalled £37 billion in July 2005. Despite this, the companies paid out a total of £39 billion in dividends to shareholders during 2004.

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