Vodafone’s DB deficit falls by €184m

Vodafone’s defined benefit deficit has fallen by €184m to €410m, as 31 March 2018, on an IAS 19 accounting basis, it has revealed.

In its end of year results published today, 15 May 2018, the telecommunications company said that it has contributed €301m to its Vodafone UK Group Pension Scheme since the 19 October 2017, offset by €57m of net actuarial losses arising from “changes in demographic assumptions”.

Last year, the firm’s deficit totalled €600m as of 31 March 2017, double the €300m recorded in 2016, “principally due to a decrease in the discount rates used for defined benefit schemes in the UK and Eurozone”.

Vodafone completed triennial actuarial valuation of its scheme as of 31 March 2016, separate to the IFRS accounting basis above, which showed a net scheme deficit of €317m, comprising of a €385m deficit for the Vodafone section and a €68m surplus for the CWW section.

Following the triennial valuation, the scheme’s trustees agreed on a cash contribution of €209m into the Vodafone section and a €66m contribution into the CWW section.

Vodafone has no plans to make any further contributions following the 2016 valuation.

According to Vodafone, the cash payments were invested into annuity policies issued by a third-party insurer, meaning there was “no significant net impact to free cash flow”.

The firm’s dividends increased by 2 per cent over the financial year to 31 March 2018, representing a 10.23 eurocent per share dividend.

    Share Story:

Recent Stories


A changing DC market
In our latest Pensions Age video interview, Aon DC senior partner and head of DC consulting, Ben Roe, speaks to Laura Blows about the latest changes and challenges within the DC sector

Being retirement ready
Gavin Lewis, Head of UK and Ireland Institutional at BlackRock, talks to Francesca Fabrizi about the BlackRock 2024 UK Read on Retirement report, 'Ready or not. How are we feeling about retirement?’

Podcast: Who matters most in pensions?
In the latest Pensions Age podcast, Francesca Fabrizi speaks to Capita Pension Solutions global practice leader & chief revenue officer, Stuart Heatley, about who matters most in pensions and how to best meet their needs
Podcast: A look at asset-backed securities
Royal London Asset Management head of ABS, Jeremy Deacon, chats about asset-backed securities (ABS) in our latest Pensions Age podcast

Advertisement Advertisement Advertisement