National Express UK Bus division has agreed a funding plan for the £68 million deficit of its defined benefit (DB) pension scheme.
The West Midlands Pension scheme is a local government scheme that dates from when regional bus organisations were owned by local councils.†In 2008 it was agreed that National Express would pay £3.3 million per annum over 12 years to eliminate a £28 million deficit.
The latest triennial valuation has identified that the scheme deficit has increased to £68 million and the organisation has reached agreement with the trustees to increase its deficit recovery payment to £5.5 million per annum for the next 12 years.
The organisation has agreed with trustees to pay £5.5 million per year into the scheme for the next 12 years to reduce future funding risk.
A spokesperson from National Express said: “Following a similar agreement [in 2010] with the UK Group and Coach pension scheme trustees, National Express now has structured deficit recovery plans in place covering all material pension liabilities which will see the group contribute nearly £10 million per annum compared with £6.5 million per annum under the previous plans.†This will remove substantial future risk from the group’s funding requirements.”
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