Debenhams agrees pension recovery plan

Debenhams is to contribute £8.9 million each year until 2022 to restore two of its pension schemes to a fully funded position.

The Debenhams Retirement Scheme and the Debenhams Executive Pension Plan, which closed to future accrual from 31 October 2006, showed a deficit of £57.3 million on 1 September 2012, up from £3.9 million the previous year.

The annual contributions to the two funds will rise each year in line with the Retail Prices Index (RPI).

The department store’s Full year results 2012 stated that the increase in the pensions deficit is due to an increase in the value of assets held, which was more than offset by an increase in the pension fund’s liabilities.