Trinity Mirror blames pension deficit on FRS 17
Trinity Mirror's pension funds have fallen into deficit, a position that the company has blamed on the controversial accounting standard FRS 17.
Link: FRS 17 special report
The group’s 10 funds registered a modest deficit in aggregate at the end of last year at a time when the company considers the future of its final salary scheme. It is thought the funds have dipped further into the red since then.
FRS17 means that companies take a snapshot of a fund’s assets and liabilities at a given time, making funds look more volatile, and the change to the standard has meant many companies registering a deficit in their funds as stock markets continue to plunge.
If a deficit persists however Trinity Mirror may be forced to increase contribution rates to make up the difference.