Marks and Spencer reduces pension scheme deficit

Marks and Spencer’s pension scheme has moved into surplus following the introduction of assets as part of its funding plan.

The retailer’s full-year results for 2010/2011 showed that at 2 April 2011 the net retirement benefit surplus was £168.5 million, compared to a previous deficit of £366.5 million.

The fall in liabilities can be attributed to the change from the retail price index (RPI) to the consumer price index (CPI) for deferred members. This resulted in a liabilities reduction of £170 million.

As part of its recovery plan, which was established in 2010, Marks and Spencer said it would pay an additional £35 million a year for the next three years, rising to £60 million for the remainder of the period.

The scheme is also benefiting from a further cash injection as a result of a property partnership.

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