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LONDON (Alliance News) - Marks and Spencer Group PLC on Thursday said it has reached an agreement with its pension scheme trustees regarding the triennial actuarial valuation of its UK defined benefit pension scheme.
The valuation as at March 31 resulted in a statutory surplus of GBP204 million, the fashion, food and homewares retailer said, which is an improvement on the GBP290 million deficit at March 31, 2012.
M&S said this was due to an outperformance of return-seeking assets over the period, while the scheme was insulated from the effect of falling gilt rates due to it being fully hedged for interest rate purposes.
The company and the trustees have agreed to continue with the current de-risking investment strategy with no change to the 2012 funding arrangements for past service, M&S said.
M&S added that as a result of the valuation and reduction in discount rates, the annual cash contributions for future service will increase to GBP57 million in financial 2017 from GBP42 million in financial 2016.
Shares in M&S were trading down 1.2% at 408.20 pence early on Thursday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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