Dear Colleagues

Welcome to the first edition of Talking Pensions. This newsletter provides general information about the Kingfisher pension schemes, including highlights of the annual Trustees’ Report and Accounts for 2003-04. If you are already a member of the Pension Scheme, the accompanying benefits statement provides a detailed account of your benefits within the Scheme.

I hope you will find the newsletter useful and informative, but should you need further information about the Scheme, you can obtain a copy of the full Trustee’s Report and Accounts either from the Kingfisher Group Pensions Department at the address on page 7 of our PDF or from the pensions website www.kgbd.co.uk.

The year to March 2004 was one of enormous change and challenge for Kingfisher’s Pensions Department. As part of the Company’s wide-reaching business transformation programme, it announced proposals for significant changes to its UK pension schemes. Although the changes didn’t actually impact until the current scheme year, the foundations for the future success of the new arrangements were laid during the scheme year just past.

Before implementing the changes, all 38,000 of our current UK-based employees and pension scheme members were given the opportunity to join or remain a member of the Pension Scheme and to select final salary or money purchase pension benefits for the future. For many of you, the biggest change was the closure of the Kingfisher Retirement Trust, but special terms of membership of the Pension Scheme were offered, and many took the opportunity to join. Also, although (final salary) Pension Scheme members were asked to pay more to maintain the existing level of pension benefits, most of you elected to do so.

Leaving aside the April changes, I am pleased to report that the year saw the membership and fund values of both the Pension Scheme and Retirement Trust grow during the year, assisted by the return of more favourable investment conditions. Coupled with the Company’s continued commitment to funding the Pension Scheme, I am confident of the continuing security for your future pension benefits. I hope you will find the financial information on pages 10 to 12 of our PDF both useful and reassuring

The year also saw a significant change in the composition of the Trustee Board. New proposals by Kingfisher for the appointment of Trustee directors, and the ending of active participation by Comet members following the de-merger last year, saw a number of retirements and the appointment of several new trustee directors. I would like to extend my thanks to the retiring Trustees for their hard work and commitment to the management of our pension schemes, and to welcome the new members of the trustee board with whom I look forward to working.

Find out more about the new Trustee Board by clicking here.

Best wishes

Colin Hately
Head of Pensions