The combined deficit of Sainsbury's defined benefit (DB) schemes has climbed 119% in twelve months, according to its preliminary annual results.
The company, which operates two funded schemes, had a pension deficit of £850m under the IAS 19 accounting measure as of 11 March 2017, compared to £389m on 12 March 2016. This included £124m of deferred income tax asset.
The Sainsbury's Pension Scheme had a deficit of £679m, with £9.4bn of liabilities and £8.7bn of assets, while the Home Retail Group (HRG) scheme had a £171m deficit, with £1.4bn liabilities and £1.2bn assets.
Sainsbury's acquired HRG in September last year, taking on its DB pension liabilities, for £1.1bn. The firm's preliminary results backdated the liabilities for the HRG scheme to last year's reporting date.
The figures also included two unfunded pension liabilities for senior former employees in the two schemes.
The company blamed the increase in deficit due to the discount rate falling from 3.65% to 2.7%.
Both schemes' most recent triennial valuations were carried out as of 31 March 2015, with the Sainsbury's scheme reporting a £740m actuarial deficit, and the HRG scheme having a deficit totalling £315m.
In September last year, the company agreed two special contributions of £125m for August 2015 and August 2016, and annual contributions of £65m a year until 2012, for the Sainsbury's scheme.
For the HRG scheme, a recovery plan was agreed upon acquisition, which promised an immediate payment of £50m, £10m quarterly payments until 2021, and security over £80m of freehold property, which will be completed by 2018.
It has now committed to annual contributions of £84m and £40m to the Sainsbury's and the HRG schemes respectively.
Sainsbury's had not responded to a request for comment at the time of publication.
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