Pension fund deficits at FTSE 100 companies fell by £20.5bn (€30.5bn) in 2006, the largest annual reduction since records began in 2002.

A study conducted by consultancy firm Watson Wyatt reported that pension deficits for the FTSE 100 stood at £39.9bn at the end of 2006, as calculated under the FRS 17 accounting standard. The deficit at the end of 2005 stood at £60.4bn.