UK - Troubled engineering group Invensys is to sell off subsidiary businesses to help plug its £415m FRS17 pension deficit.
The £3bn Invensys Group Pension Scheme will receive up to £150m after further non-core business subsidiaries are sold.
The firm said 15% of the proceeds of sales above £1bn and up to £150m would be transferred into the scheme.
It will also make five payments of £15m over the next three years and continue annual employer contributions of 20% of pay, which began on October 1 after a 16-year holiday.
Spokesman Toby Kay said the changes followed a triennial actuarial review of its UK scheme by Punter Southall.
“This is an agreement we have reached with the trustees. The market has improved and closed some of the gap, but there is still a need to pay into the scheme.”
The pensions gap is part of an estimated £1.6bn worth of debts for the London-based rail systems and production management firm.
If £904m of this debt is not paid to creditors before June next year, the company could be forced to close, and the scheme put into wind-up.
Chief executive Rick Hay-thornthwaite said the disposal programme was “on schedule” and was likely to generate “in excess” of £1.8bn over the next 12 months.
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