UK - GKN has knocked £28m ($45.9m) off its UK scheme deficit since December thanks to asset value gains arising from its asset-backed partnership arrangement.
The technology and engineering firm's half yearly report for the six months ended 30 June, published today, revealed a deficit of £56m, compared with the December 2010 year end figure of £84m.
It said the reduction was mainly due to gains in asset values and an increase in the expected return on scheme assets arising from the partnership arrangement agreed with the scheme trustees last year.
In April last year, GKN agreed a 20-year asset-backed payment with the scheme's trustees under which it paid £30m per year to tackle its £499m deficit.
Under the agreement, payments are paid by a Scottish Limited Partnership, which is within the GKN group. The income for the SLP deal comes from UK properties leased to the firms' subsidiaries and royalty income from the use of GKN trademarks.
The group paid its first distribution of £23m from the pension partnership to the UK pension scheme in June.
In addition, the increase in the expected return on scheme assets arising from the partnership arrangement helped the firm reduce its other net financing charges from £18m to £8m.
Elsewhere, GKN reported the profit attributable to non-controlling interests was £14m, including an £11m impact from the pension partnership.
GKN operates a number of defined benefit and defined contribution pension schemes together with retiree medical arrangements across the group.
The deficit of all schemes across the group at 30 June was £574m, a £26m decrease over December 2010. Scheme contributions for the six months across the group totalled £34m, compared to £29m as at end of December 2010.
The People's Pension, Atlas Master Trust and The Cheviot Trust have been granted authorisation from The Pensions Regulator (TPR), taking the total number of authorised master trusts to 18.
Pension schemes have been warned they may now face a more challenging legal test if they wish to fix drafting errors.
The Greene King Pension Scheme has appointed XPS Pensions as its actuarial and investment adviser following a competitive tender process.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...