Imperial Tobacco Agrees £65m-a-year Recovery Plan

Source from:  Professional Pensions  05/08/2014

Imperial Tobacco has agreed a £65m-a-year recovery plan, to eliminate the deficit of the Imperial Tobacco Pension Fund by March 2028.

The plan was agreed after the scheme, which has a deficit of £946m on an accounting basis, completed its latest triennial valuation.

The employer's contribution has increased from £31m a year - to an initial payment of £48m on 31 March 2014, expected to be followed by payments of £53m and £58m in March 2015 and 2016 respectively.

This is to be followed by payments of £65m in March each year until 2028. These contributions will be reviewed again when the triennial valuation is undertaken as at 31 March 2016. Enditem