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Pension Funds

Tesco pension fund deficit falls 20% in 6-month period

Tesco PLC's group pension fund deficit improved more than 20% in the six months ended Aug. 25, to 2.14 billion ($2.75 billion).

In a financial update for the six-month period, the Cheshunt, England-based retailer said the deficit for the 13.24 billion in group defined benefit funds also improved vs. figures as of Aug. 26, 2017, falling 10.7%.

Tesco sponsors a number of DB and defined contribution plans, the most significant of which is the frozen 13.14 billion Tesco PLC Pension Scheme, London. This fund represented 95% of the group's deficit, down from 96% in February.

The change in the deficit was largely attributed to asset performance over the period, the update said. The sponsoring employer also makes deficit contributions of at 285 million per year.

On March 5, Tesco acquired wholesale operator Booker Group, whose DB funds became part of Tesco Group. These funds, which are frozen, had a combined deficit of 22 million upon acquisition, the update said. Assets were not available.