logo
Share SHARE
FONT-SIZE Plus   Neg

Smiths Group Reaches Agreement With UK Pension Trustees

Smiths Group plc(SMIN.L), and the Trustees of its two major UK pension schemes, Smiths Industries Pension Scheme or SIPS and the TI Group Pension Scheme or TIGPS have reached an agreement to maintain the current annual contributions over slightly reduced recovery periods. The completion of the triennial actuarial valuations of the schemes at March 31 and April 5 which showed deficits of 535 million pounds in SIPS and 117 million pounds in TIGPS, resulted in these agreements. The deficit amount mirrors depressed discount rates, which have been affected by the impact of quantitative easing, Smiths said.

The current contributions to the plan would include a cash contributions to SIPS of 36 million pounds a year until October 2019. and to TIGPS 16 million pounds a year till April 2016. An on-going annual investment of £24m a year in index-linked gilts which will be held in an escrow account in connection with SIPS, Smiths added.

The company said that the above mentioned funding plans will be assessed at future triennial reviews if there is improvements in the overall funding positions of the Schemes at future triennial valuations, the contibutions will be reduced.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
American Airlines Group said pilots at its subsidiaries American Airlines and US Airways, represented by Allied Pilots Association, have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years. LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook.
comments powered by Disqus
Follow RTT