The net balance sheet position of the pension plans at the end of June 2015 was an IFRS deficit of €1.1 billion (year-end 2014: €0.8 billion). This was the result of the net effect of:

  • Lower asset returns
  • Higher inflation in the UK
  • Further de-risking of pension liabilities of £1.5 billion (€2.0 billion) in the first half of the year related to the ICI Pension Fund in the UK, by way of three additional non-cash buy-in transactions, together giving rise to an adverse impact of €321 million in Other comprehensive income

Offset by:

  • Top-up payments of €339 million, paid in Q1, into certain UK defined benefit pension plans
  • Higher discount rates in the key countries

The triennial review of the ICI Pension Fund was completed in July 2015, a new valuation and payment schedule was agreed with the Trustees.