Pension Scheme changes from 1 April 2004

As you know, Kingfisher and its operating companies provide employees with the opportunity to save for a more financially secure retirement through membership of an occupational pension scheme. Prior to 1 April 2004, pension provision was made for employees over the age of eighteen through membership of either the Kingfisher Pension Scheme (KPS) or the Kingfisher Retirement Trust (KRT).

These arrangements stood employees in good stead over a number of years, but as many of you will be aware from the media, the rising cost of providing good pensions and the uncertainty of the financial commitment of doing so, especially through final salary pension schemes, had become a cause of concern.

It had also become clear that most of Kingfisher’s pension costs were directed towards a relatively small proportion of the group’s employees. Therefore Kingfisher decided to alter the pension arrangements both to gain better control over pension costs and to enable more employees to make better provision for retirement.

During the period between January and March, all employees were consulted about the changes, and given the opportunity to select either final salary or money purchase pensions for the future.

Employees joining a Kingfisher company after 31 March 2004 have access to the money purchase section of the Pension Scheme (known as KPS-MP).

As mentioned above, KRT was closed at 31 March 2004 as part of the overhaul of Kingfisher’s pension arrangements. At the time of writing, the Trustees are considering the options for securing benefits, and when they have decided how to proceed, they will write to all members of KRT individually, explaining what is happening to their benefits. If you retain benefits in KRT, you will be given an opportunity to choose how your benefits will be secured until you retire.