G4S’ group net pension deficit jumped to £463m at 30 June 2019, up from £364m at the end of December 2018.

Publishing its interim results, G4S said the £99m increase was primarily due to a significant increase in the net deficit of the of the UK pension scheme together with a smaller increase in the deficits in the group’s unfunded pension schemes.

Net of applicable tax in the relevant jurisdictions the deficit stood at £385m (£302m, December 2018).

G4S’ main defined benefit pension scheme is in the UK, and accounts for around 63 per cent (62 per cent, December 2018) of the total net deficit of all the DB schemes operated by the group.

It noted that the increase in the UK’s pension scheme liabilities reflects a decrease in the discount rate to 2.25 per cent (2.85 per cent, December 2018), which was caused by a reduction in corporate bond rates.

The deficit was partially offset by the payment of the scheduled deficit-repair contributions of £26m (six months ended 30 June 2018, £21m) during the period, and the net increase in the pension liabilities was partially offset by a gain on the revaluation of the pension scheme assets.

G4S added that the triennial valuation in respect of the UK scheme is underway, during which it expects to agree the future deficit-repair contributions.

In addition, following the High Court ruling on Guaranteed Minimum Pensions (GMP) in the Lloyds Banking Group case, G4S has paid £35m for the year end 31 December 2018 in relation to the equalisation of benefits for historical GMP obligations between men and women in the UK.

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