Trustee Board Report

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 13 of the full Report and 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 has been a registered pension scheme under paragraph 1(1) of Schedule 36 of Finance Act 2004 from 6 April 2006 and before that date was an exempt approved scheme under section 591(1) Income and Corporation Taxes Act 1988;
  
  
• 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.