Lloyds holds £31.3bn pension liability

7 August 2013

Lloyds Banking Group has the third largest pension liability of any large UK firm, according to new analysis.

Actuarial consultants Lane Clark & Peacock found the institution's defined benefit pension liabilities stood at £31.3 billion at the end of 2012 - up from the £28.2 billion at the end of the previous year, the Financial Times reports.

Lloyds is partially owned by the government after being bailed out during the financial crisis.

Another UK bank that was rescued is the Royal Bank of Scotland (RBS), which was found to have the fourth largest deficit among large UK companies.

Lloyds and RBS are both considering taking steps to resume dividend payouts to shareholders, something they have been banned from doing since the financial crisis required bailouts. However, these pension liabilities could affect the decision.

Overall, the survey found pension schemes were slightly less well funded at the end of 2012 than they were at the end of 2011, despite record contributions.

By Asim Shah

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