SCOTLAND - Scottish papermaker Tullis Russell is to plunge a fifth of its pre-tax profits into its final salary pension scheme.
And chief executive Fred Bowden said it may have to inject another £1m into the fund to help reduce a £25m deficit – £20m of which was created last year.
Tullis has already paid £2.7m in annual contributions and says any further cash injection will depend on market conditions during a review on minimum funding requirements in January.
Bowden said the payout would not be “life threatening” to the company.
The scheme has increased its holding in bonds to counteract a prolonged stock market downturn.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).