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The Actuary The magazine of the Institute & Faculty of Actuaries

Scientific supplies firm looks to de-risk following scheme mergers

The firm announced in its preliminary results today that it had finalised an actuarial valuation for the scheme and agreed a ten-year recovery plan.

The scheme - created last September through the merger of four closed defined benefit scheme - has a funding deficit of £2.7m on an actuarial basis, or £5.4m on an IAS19 basis.

The firm said this IAS19 deficit had had been cut by £1.4m after the scheme switched from using the retail prices index to the consumer prices index as the basis for statutory inflation increases in certain pension benefits.

The group has agreed to pay £320,000 a year - increasing by 2% annually - with the objective of clearing the deficit within ten years.

The group said in its full year results: "With the scheme merger now completed, attention will be focussed on exploring opportunities to reduce the Group's pension liability through the use of structured insurance products."

Source: Professional Pensions