The Scheme provides retirement and death benefits by means of a trust which is independent of the participating companies’ financial affairs.

Following a review of retirement benefits, the Scheme was amended with effect from 1 April 2004 and became a hybrid scheme, providing ‘money purchase’ benefits (i.e. based on what a member’s accumulated fund value will purchase at retirement) for all UK employees recruited on or after 1 April 2004, or who elect to join the Scheme or otherwise elect to be provided with money purchase benefits after that date, and ‘final salary’ benefits (i.e. based on a member’s salary and service) for employees who joined the Scheme before 1 April 2004 (and do not elect to be provided with money purchase benefits).

The two sections of the Scheme are referred to respectively as the Final Salary Section (or KPS-FS) and the Money Purchase Section (or KPS-MP). A summary of the changes introduced on 1 April 2004, and the benefits now provided by the respective sections of the Scheme is provided on page 10 of the full Report & Accounts PDF.

During the Scheme year under review:

• The Money Purchase section of the Scheme was open to all UK companies and their employees within the Kingfisher Group, subject to certain employee eligibility conditions;
  
• The Scheme was governed by the Definitive Trust Deed and Rules (as amended inter alia by a Deed of Amendment dated 31 March 2004) and approved by the Inland Revenue under the Income and Corporation Taxes Act 1988 as an exempt approved scheme;
  
• Members of the Final Salary Section were contracted-out of the State Second Pension (S2P) whilst members of the Money Purchase Section participated in S2P.