More great news today from high-speed packaging and factory automation expert Mpac Group (MPAC) .
The group said that following the Jun'24 triennial valuation, its closed £270m UK-defined benefit pension scheme was now in surplus to the tune of +£21.1m vs a deficit of -£28.4m in Jun'21 - representing a 107.8% funding level and another major milestone achieved.
This means that future company contributions will be put into a separate escrow account in order to minimise the risk that the scheme becomes overfunded.
Plus, in the event the surplus ever reaches 110% or more, no further contributions will be required.
CFO Will Wilkins commenting:
"I am pleased to report that the recovery plan for the scheme, which has delivered almost £50m of funding improvement in three years, has eliminated the pension deficit and provided the basis for the Trustee and the Group to begin the assessment for the transfer of the scheme to a third party. There remains a significant amount of work to be done to ensure the best outcome for both scheme members and the Group, but there are reasons to be confident that, with continued sound governance, management of the scheme and cooperation between the Trustee and the Company, we will meet our long-term objective of decoupling the scheme from the Company.''
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