Marks and Spencer Group plc has announced that it has reached agreement with the Company's Pension Scheme Trustees on the terms of the triennial actuarial valuation as at 31 March 2012.
The valuation of the Company's UK defined benefit pension scheme ("Pension Scheme") at 31 March 2012 has resulted in a deficit of £290m. This represents a substantial reduction in deficit from £1.3bn as at 31 March 2009.
The improvement reflects the additional contributions made to the Pension Scheme following the 2009 valuation together with strong investment growth and sound risk management. The valuation is based on the same methodology adopted for the 2009 valuation but incorporates the latest asset values and revised assumptions in relation to longevity.
The Company and the Trustees have agreed a 10 year funding plan, which includes annual cash contributions of £28m per annum from 2013/14 to 2016/17, a reduction on the previously agreed £60m per annum until 2017/18. The remaining balance is expected to be met by investment returns on the scheme's existing assets. These contributions are in addition to the payments under the existing pension property partnership.
Make sure you enter the (*) required information where indicated. HTML code is not allowed.