UK - Supermarket giant Tesco has revealed a £540m FRS17 deficit in its £1.5bn final salary scheme.
Preliminary accounts show that the Tesco Pension Scheme had a net FRS17 deficit of £540m at February 22, against £127m last year. Had the supermarket chain fully implemented FRS17, its £1.3bn annual profits would have been £19m lower.
But Tesco notes that its scheme is relatively young and has 120,000 active members and only 10,000 pensioners.
Tesco also published the result of its triennial actuarial valuation undertaken in March 2002 – revealing a deficit of £159m and making it 91% funded on an MFR basis.
The firm has taken steps to deal with this deficit by increasing both the company and employee contributions.
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Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point