Home Retail Group’s defined benefit (DB) pension scheme has recorded a net exceptional gain of £31.3 million since it was closed to future accrual from 31 January 2013.
This includes a non-cash curtailment gain of £37.4 million, arising from the one-off reduction in the scheme’s liabilities because members ware no longer entitled to pension benefits linked to salary increases, offset by £6.1 million related to the closure of the scheme.
The parent company of Argos, Habitat and Homebase has also agreed a schedule of deficit recovery payments following its triennial valuation at 31 March 2012, which showed a deficit of £158 million. As a result, Home Retail Group will make a payment of £22 million into the scheme for the financial year ending 1 March 2014 and for each of the six subsequent years.
All active members of the DB scheme were offered entry into the retailer’s group personal pension (GPP) plan.