DB Deficit Increases for Grafton
29 August 2012 (PLANSPONSOREurope.com) - Irish construction group Grafton has seen its defined benefit pension deficit increase, according to half year results.
The group’s results reveal the deficit on defined benefit pension schemes was €49.3m (31 December 2011: €28.6m) net of the related deferred tax asset. The market value of scheme assets increased to €204.4m (31 December 2011: €191.1m). Scheme liabilities were €262.1 million (31 December 2011: €224.6m), up €37.5m- a figures that includes €30.5m due to a reduction in the rates used to discount liabilities in line with the fall in AA corporate bonds with a maturity of more than ten years.
The pension scheme deficit of €57,662,000 is shown in the group balance sheet as retirement benefit obligations (non-current liabilities) with €10,203,000 relating to the two UK schemes and €47,459,000 relating to the group’s five Irish schemes. The group attributes changes in the rates used to discount liabilities in line with changes in corporate bond rates for an increase in scheme liabilities of €30.5m.