Tesco’s net pension deficit increased from £1,407 billion in 2011 to £1,839 billion in 2012. Â
The retailer attributes the change, revealed in its Preliminary results 2012/13, to a reduction in real corporate bond yields leading to a fall of 0.3% in the discount rate used to measure the organisation’s liabilities.Â
Tesco was able to partially limit the effects of the pension deficit increase by making a one-off cash contribution of £180 billion in April 2012 into its pension pot. It also received higher than expected asset returns in 2012.    Â
Tesco was unavailable for comment on its Preliminary results 2012/13.
For the second year in a row reporting on Tesco’s results, you have got £million and £billion mixed up! Fairly careless, you are out by a factor of 1000!