Reuters moves to cut its pension deficit
Thursday 25 May 2006
The news and information group Reuters became the latest large company to commit to wiping out its domestic pension deficit yesterday, pledging to pay £230m into its two UK schemes over the next two years.
The two schemes have a combined deficit of about £265m, according to the most recently published figures. Reuters saidit plans to make two cash injections, which will eliminate most of the deficit - £188m this year, and a further £42m next year. Once the payments have been made, it will be left with a deficit of about £35m in the UK, and a hole of about £32m in its overseas pension plans.
In its statement yesterday, the group said the payments would not impact the funding of its current "Reuters Core Plus" growth strategy, or its ongoing share buyback programme.
The company said it had agreed to "de-risk the investment strategy of the plans", reducing its exposure to future risks from market movements.
According to Reuters' latest report and accounts, about 55 per cent of the assets in its UK plans are invested in equities, with 36 per cent in bonds, 7 per cent in property and 2 per cent in cash.
It added that its payments into the pension funds would also provide an increase in payouts for existing pensioners.
Shares in Reuters fell 7p to close at 376.75p.
- 1 Australia to impose 24-hour curfew on all cats to protect endangered species
- 2 The difference between a psychopath and a sociopath
- 3 Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
- 4 Walter Palmer: Cecil the lion killer revealed to be American dentist
- 5 What TripAdvisor users think of 16 of the world's most popular landmarks
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Labour leadership contest: I would never quit the party, says Liz Kendall
iJobs Money & Business
£45 - £55k DOE: Guru Careers: A Financial Controller is required to join a suc...
£12500 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...
£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...