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.