Date: Friday 06 Jul 2012
Premier Inn and Costa Coffee owner Whitbread has come to an agreement over the group's pension fund on the triennial valuation as at March 31st last year.
It has been agreed that the valuation shows a funding deficit on an actuarial basis of £521m compared to £388m at the last triennial valuation.
This deficit will be covered by the existing recovery plan agreed as part of the 2008 triennial review, along with the expected income stream from the existing Pension Funding Partnerships. No new cash payments will be required as a result of this 2011 agreement.
To provide further security to the pension fund scheme, Whitbread will grant an additional charge of £180m in favour of the fund on Whitbread properties, taking the total amount charged to £408m. The Trustee of the fund has agreed that the amount secured by this additional charge will reduce if the deficit decreases.
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