Northumbrian Water has announced a reduction in its defined benefit pension deficit from £133.1 million at the end of March to £106.6 million in September.
The cut in the deficit is due to a reduction in the liabilities of the scheme (£52.9 million), which has more than offset a reduction in the value of scheme assets (£26.4 million).
The utilities firm has acted on the government’s stated intention to link pension to the consumer prices index (CPI) to set the inflation measure, which has given rise to a reduction in the actuarial valuation of the liabilities of around £36 million.
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Tynan Barton is a business journalist and has been writing in the employee benefits and HR field for over 15 years. She joined Employee Benefits in 2010 as reporter, and has been features editor since 2011.View full profile
