Marks & Spencer share price: Retailer reaches agreement with pension scheme trustees
Marks and Spencer (LON:MKS) has reached an agreement with its pension scheme trustees regarding the triennial actuarial valuation of its UK defined benefit pension scheme.
As of the end of March 2015, the valuation had resulted in a statutory surplus of £204 million, the blue-chip retailer said in a statement today. The figure marks an improvement on the £290 million deficit recorded three years ago. M&S attributed that to an outperformance of return-seeking assets over the period, while the scheme was insulated from the effect of falling gilt rates due to it being fully hedged for interest rate purposes.
Marks & Spencer and the trustees have agreed to continue with the current de-risking investment strategy with no change to the 2012 funding arrangements for past service. The company added that as a result of the valuation and reduction in discount rates, the annual cash contributions for future service would increase to £57 million in financial 2017 from £42 million in the prior-year period.
Marks & Spencer’s share price has fallen today, mirroring a decline on the broader UK stock market. As of 12:17 GMT, the group was changing hands at 402.60p, 2.52 percent down intraday. The FTSE 100 had meanwhile eased 2.14 percent to stand at 5,550.73 points.
As of 12:46 GMT, Thursday, 11 February, Marks and Spencer Group Plc share price is 402.20p.