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Smiths Group Reaches Agreement With UK Pension Trustees

7/5/2013 2:33 AM ET

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.

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by RTT Staff Writer

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