Lloyds TSB Group, London, will contribute £200 million ($367 million) a year to its two pension plans for about 10 years, until a £2 billion funding deficit calculated under FRS17 is plugged, according to a trading update released today.
It has not been decided how the contribution will be invested, but it will likely be spread evenly among the current allocations of both plans: Lloyds TSB Group Pension Schemes No. 1 and No. 2, spokesman Lee Calder said.
Lloyds had £13.2 billion in pension assets as of March 31, Mr. Calder said. About 64% is invested in equities, 23% in bonds, and the balance in real estate and cash, according to the company's 2005 annual report.