Deficits

Pendragon has agreed a deficit reduction plan with trustees, giving its pension schemes an interest in a £35m Central Asset Reserve and cutting sponsor contributions by £46m over three years.

CANADA - The Ontario Municipal Employees Retirement System will increase its contribution rate in 2012 as part of a pre-agreed plan for yearly rate hikes in the three years to 2013.

Aviva is to sell its roadside recovery business RAC for £1bn while retaining its defined benefit pension liabilities.

The Royal Mail has cut its pension scheme deficit by 45% after a change in inflation assumptions, despite suffering losses of more than £49m last year.

US - S&P 1500 defined benefit pension deficits fell by just $8bn last year, despite employer contributions of $77bn and investment returns of $156bn, analysis by Mercer shows.

Karel Van Gutte has been named as secretary general of the Belgian Association of Pension Institutions (BAPI).

The balance of schemes monitored by the Pension Protection Fund has fallen from a surplus of £2.3bn to a deficit of £13.5bn since the end of April, figures show.

UK - The Royal Mail's £10.3bn ($16.8bn) pensions deficit will be taken on by the tax-payer next spring as legislation to privatise the service is expected to become law next week.

Alan Howard of Aon Hewitt discusses incentive exercises

US - The aggregate deficit in pension plans sponsored by S&P 1500 companies increased by $37bn during May, figures from Mercer show.