UK - High street chemist Boots has an FRS17 surplus of £200m on its £2.2bn pension scheme, figures for the year to the end of March show.
Boots has also released the results of its actuarial valuation which shows a surplus of £130m and 130% funding on an MFR basis.
The retail giant’s preliminary accounts state: “Matching pensions assets and liabilities has reduced the risk of a material pension fund deficit as well as fixing the company’s long-term pension contribution at about £50m per annum.”
These results appear to vindicate the company’s decision to move all of its assets into bonds during the 18 months to September 2001.
Some analysts suggest that the surplus of £200m would have been a deficit of £100m if it had not made this move.
In April Boots moved further towards completely matching its assets and liabilities by buying £200m of inflation-linked swaps.
Boots’ head of corporate finance and pension scheme investment committee member John Ralfe was a key adviser to the Accounting Standards Board on FRS17.
The Boots Company Pension Scheme is an immature scheme with around 36,000 active, 18,000 deferred and 18,000 pensioner members.
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This week's edition of Professional Pensions is out now