UK - Marconi has doubled the allocation of bonds in its £2.35m final salary pension scheme over the past 18 months.
In June 2001, the scheme had 36% of its assets in bonds, 52% in equities and 11% in cash and property. It now has 72% in bonds, 21% in equities and 11% in property.
The spokesman confirmed that there had been several fund management changes as a result of the switch but refused to reveal details.
The beleaguered telecoms company reduced its additional annual contributions into the scheme from April from £16m to £7m but contributions of 8.6% of pensionable payroll remained unchanged. The scheme currently has a £298m deficit.
A Marconi spokesman said: “The preliminary review of the triennial evaluation shows the UK fund to be 98% funded on an ongoing basis and 121% funded under the minimum funding requirement.”
The scheme has 15,162 members, 34,900 deferred members and 38,780 pensioners.
*Marconi has confirmed it will lodge a legal defence to former finance director John Mayo’s £1.6m claim that his pension was underfunded.Mayo – who received a £1m severance package in July 2001 – says his scheme assets are £964,000 short of the £2.28m needed to meet benefits.
He is also asking Marconi to make good a £643,000 tax charge incurred after he requested that his fund be transferred from the firm’s executive pension plan to a separate scheme.
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