UK - Homes builder Persimmon is merging its defined benefit schemes in a bid to maintain paying employees' final salary benefits.
Persimmon, which acquired competitor Beazer Homes last year, said it was merging the schemes on the advice of its lawyers and actuaries.
It says the move will enable it to cut costs and gain administration efficiencies.
At the start of the year, the combined scheme had a £35.6m deficit under FRS17.
The two schemes being merged are the £52m Beazer Group Pension Scheme and the £47m Persimmon Pension and Life Assurance Scheme.
Persimmon said a full valuation and review of the combined schemes’ arrangements was being carried out. “This merger is intended to ensure that the future pension provision of the merged scheme is placed on a sustainable footing, providing consistent benefits for members of the old Persimmon and Beazer schemes.”
Persimmon has had to repeatedly top up the combined schemes to improve their funding levels.
The merged scheme received a £4m top-up in July, in addition to the £6m that was paid to the Persimmon scheme and the £7m that the Beazer scheme received last year.
The Persimmon and Beazer schemes were closed to new employees last October, and a stakeholder was put in place.
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