UK – The £600m (€691m) UK pension plan of Rentokil Initial, the hygiene and pest control company, is undergoing an actuarial review that is likely to lead to a full asset liability study later in the year.
A spokeswoman for the fund says the review is not being conducted because for any extraordinary reasons, even though the fund has closed its defined benefit scheme to new members. “All DB schemes are required to undertake a standard valuation of their assets and liabilities every three years,” she says.
Though the valuation will lead to a full-scale ALM, the spokeswoman says it’s too early to speculate whether the fund’s asset allocation strategy and its investment manager roster will change. “Those are aspects of the ALM that we probably won’t be looking at until next year,” she explains.
Rentokil closed its DB scheme to new members late last year and introduced a new defined contribution plan for them instead. The spokeswoman denies that FRS17 was a major factor in the move and said there were no plans to close the DB scheme altogether.
Bacon and Woodrow, the scheme’s actuaries and consultants, are carrying out the review.