Car manual publisher, Haynes Group, has revealed its total defined benefit pension deficit for its two schemes has increased to £19.3m (IAS 19).

The publisher, which closed its UK DB scheme to future accrual on 30 November 2018, has accounted £1.2m of funds as a result of the High Court ruling on guaranteed minimum pensions (GMP) on the Lloyds Banking Group case.

“The company and the scheme trustees are yet to decide which approach they will use to equalise GMP as a range of options are available. While the financial statements reflect the current best estimate of the impact on pension liabilities, that estimate reflects a number of assumptions and the information currently available.

“The current best estimate reflects an increase in liabilities of 2.7 per cent and the directors have been advised the final impact could be in the potential range of 2-3.3 per cent of liabilities.”

As a result the IAS 19 net pension deficit has increased by 3 per cent, rising to £19.3m at 30 November 2018, from £18.7m at 31 May 2018. However, the cost of GMP has been partially offset by a reduction in the scheme liabilities driven by a higher UK discount rate assumption.

The combined assets of the schemes were £33.3m (31 May 2018: £34.m) and the combined scheme liabilities were £52.6m (31 May 2018: £52.8m).

Haynes operates a number of pension schemes in the countries within which it operates. The principal pension programmes are a contributory defined benefit scheme in the UK and a non-contributory defined benefit plan in the US. The assets of all schemes are held independently of the group and its subsidiaries.

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