Tesco’s defined benefit pension deficit has increased from £1.8bn to £2.6bn according to its latest financial results.

In a statement, Tesco said the rise is “mainly due to a reduction in real corporate bond yields with a subsequent fall in the discount rate used to measure liabilities”.

In the 52 weeks ended 22 February 2014, employer contributions rose from £486m to £531m.

As part of the 2011 triennial valuation, the company agreed with the trustees to increase security, and on top of the normal contributions, made an additional contribution of £180m to the UK pension scheme on 30 March 2012.

The group operates a variety of post-employment benefit arrangements covering funded defined contribution schemes and both funded and unfunded defined benefit schemes.

The most significant of these are the funded defined benefit pension schemes for the group’s employees in the UK which represents 95 per cent of the defined benefit obligation, the Republic of Ireland, Thailand and South Korea.

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