UK retailer Marks and Spencer has unveiled plans to increase its pension plan funding by GBP800m (US$1.18bn) in a bid to reduce the deficit in its pension scheme.
The company said that it will contribute GBP35m a year in cash to the scheme for the next three years, rising to GBP60m a year until 2018.
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The group will also divert GBP300m in property assets to the fund, the company revealed.
“We’ve agreed a comprehensive funding plan with the pension scheme trustees that makes efficient use of our existing assets, providing the scheme with a substantial income to reduce the deficit, while ensuring our cash flow obligations are spread over a manageable time frame,” outgoing M&S finance director Ian Dyson commented.
The deficit stood at GBP1.3bn in March 2009.
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