UK - Engineering firm Smiths Group has ended its contribution holiday after an FRS17 valuation of its £2.5bn pension fund revealed a £150m deficit.
The company will now resume employer contributions of £30m a year.
The deficit was revealed in the group’s interim results to January 31, which adopted FRS17 calculations for the first time.
The inclusion of the FRS17 report contributed to a 1% drop in the firm’s half yearly profits to £180m.
But finance director Alan Thomson said that unlike other quoted companies, the funding of its pension scheme is not a “major issue”.
He said scheme finances were stable following its decision two years ago to place 60% of its assets in bonds and gilts and leave 40% in equities.
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