skip to main content
Find Insight DIY on
* * *


Home Retail Group deficit soars

The Home Retail Group Pension Scheme has seen its accounting deficit jump from £7.5m to £115.3m over the last 12 months.

The firm, which operates the Argos and Homebase stores, revealed in its full year results that the deficit had been inflated by a reduction in the discount rate and the effect of a pensioner buy-in.

It said the present value of scheme liabilities had increased by £123.4m to £879.7m, driven principally by a drop in the discount rate to from 5.7% to 4.8%, while assets increased by £15.6m to £764.4m, reports sister publication Professional Pensions.

The asset value was reduced as a result of a buy-in with Prudential Retirement Income Limited to insure benefits for the scheme's pensioner members, agreed last May.

The scheme transferred cash and assets equivalent to £278m to the insurer under the deal and while the company said the deal was financial neutral on an actuarial basis, it has reduced the assets by approximately £45m.

Source : Jack Jones – Financial Director

04 May 2012
view more UK DIY News

I find the news and articles they publish really useful and enjoy reading their views and commentary on the industry. It's the only source of quality, reliable information on our major customers and it's used regularly by myself and my team.

Simon Fleet - Sales & Marketing Director, Thomas Dudley Ltd

Don't miss out on all the latest, breaking news from the DIY industry