Dear Colleagues,

Welcome to Talking Pensions, the Kingfisher Pensions newsletter for employees.

This newsletter provides general information about the Kingfisher Pension Scheme, including highlights of the annual Trustees' Report and Accounts for 2006-07.

Like last year, all employees will receive a Personal Benefit Statement. For those of you already building up a Kingfisher Pension, the Statement includes information about your pension to date as well as what you might expect to receive at retirement. For those colleagues who have previously decided not to join the Scheme, we want to be sure you are happy it was the right decision. As such, we have provided a forecast of the pension you might receive if you were to join the Kingfisher Pension Scheme. This year your Personal Benefit Statement will not show your benefits from the State (S2P), this is as a result of the Department for Work & Pensions updating their computer systems. We hope this facility will be available next year.

Everyone needs to plan for retirement. People are living longer and healthier lives, so it is even more important to think about how and when to save for retirement. Retirement can last for 20 or 30 years, maybe even longer. The basic State Pension is a start but it may not be enough to give you the standard of living you want.

So, if you want a higher income in retirement than you would get from your State Pension, you need another source of income as well. It's never too early to start saving for your retirement. You may have other financial priorities at the moment, but don't make that an excuse to put off saving - delay can cost you money. For those employees not members of the Kingfisher Pension Scheme, the Scheme is a good tax efficient way to start saving for your retirement. I would suggest anyone wishing to join should always speak to an Independent Financial Adviser.

Turning now to the financial position of the Scheme, the last few years has seen a dramatic improvement in the funding of the Scheme through good investment returns and also the additional contributions made by the Company. The Scheme is currently going through an actuarial valuation but the results of this will not be known until spring next year.

Finally, should you need further information about the Scheme, or if you would like a copy of the full Trustees' Report and Accounts, please visit the Pensions Website www.kingfisherpensions.com.

Best wishes

Colin Hately
Head of Pensions

2006/2007 Statistic Summary