KPMG administrators see Peacocks pension deficit inflate 73%

KPMG ADMINISTRATORS have seen Peacocks’ pension scheme deficit increase by 73% as it undergoes assessment to enter the Pension Protection Fund (PPF).

The high-street chain entered administration in January 2012 with KPMG administrators Richard Fleming, Chris Laverty and Ed Boyle appointed.

They applied for a PPF assessment with a scheme deficit of £15m based on a 2007 valuation, Accountancy Age’s sister publication Professional Pensions reports. 

The latest creditor’s report from KPMG showed the scheme deficit estimation is now about £26m.

KPMG administrators said the deficit had now been updated by the scheme actuary and the PPF and blamed the increase on lower than expected asset returns along with upward revisions to life expectancy. The scheme also fell foul to falling discount rates.

However, the administrators said they were not surprised by the increase – given the recent market conditions and poor asset returns.

The PPF could not explicitly say how far the scheme was in its assessment but confirmed most schemes take around two years.