Greene King has closed its three defined benefit (DB) pension schemes to future accrual.
During the period covered by its half-yearly report, Interim results for the 24 weeks to 14 October, the pub retailer and brewery consulted with the remaining active members of its DB schemes.
The schemes were then closed to future accrual and members were invited to join the organisation’s defined contribution (DC) pension scheme. The schemes have been closed to new joiners since 2005.
As of 14 October 2012, the schemes had an IAS 19 pension deficit of £56.2 million, which compares to £67.3 million at the previous balance sheet. The movement is primarily driven by the gain of £8.4 million, following the schemes’ closure to future accrual.
The gain comprised £10.1 million in respect of past service accrual no longer being linked to future salary growth, less £1.7 million in implementation costs.
Total cash contributions to the scheme in the period were £6.1 million for both past and current service.
The triennial valuation of the DB scheme has been completed, and annual deficit funding payments will reduce to £6.9 million from 2013.