Mpac designs, builds and supports assembling and packaging machinery. Photo: Endopack via iStock
Mpac Group has concluded negotiations with the trustees of the £309m Molins UK Pension Fund with regards to the scheme’s triennial valuation and contribution schedule.
In a market update issued this morning, the packaging machinery company said the result of the 30 June 2024 valuation concluded with the prior actuarial deficit from June 2021 of £28.4m being updated to an actuarial surplus of £21.1m on a technical provisions basis – representing a funding level of 107.8%.
It said the agreed schedule of contributions to the scheme continues, but with the contributions being directed to an escrow arrangement from January 2025. The firm said the escrow arrangement minimised the risk that the scheme becomes overfunded.
Mpac said all contributions would cease should the funding level reach 110%, based upon an annual funding test.
The firm added that the trustee and the group were "investigating options" for the transfer of the scheme to a third party and would provide updates as appropriate.
Mpac Group chief financial officer Will Wilkins said: "I am pleased to report that the recovery plan for the scheme, which has delivered almost £50m of funding improvement in three years, has eliminated the pension deficit and provided the basis for the trustee and the group to begin the assessment for the transfer of the scheme to a third party.
"There remains a significant amount of work to be done to ensure the best outcome for both scheme members and the group, but there are reasons to be confident that, with continued sound governance, management of the scheme and cooperation between the trustee and the company, we will meet our long-term objective of decoupling the scheme from the company."
