Northumbrian Water cuts pension deficit

Northumbrian Water has announced a reduction in its defined benefit pension deficit from £133.1 million at the end of March to £106.6 million in September.

The cut in the deficit is due to a reduction in the liabilities of the scheme (£52.9 million), which has more than offset a reduction in the value of scheme assets (£26.4 million).

The utilities firm has acted on the government’s stated intention to link pension to the consumer prices index (CPI) to set the inflation measure, which has given rise to a reduction in the actuarial valuation of the liabilities of around £36 million.

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