UK - Tesco Pension scheme has appointed Hewitt Associates to replace Watson Wyatt as its investment adviser.

Hewitt will take over responsibility for advice on investments for Tesco PLC Pension Scheme, however Watson Wyatt will be retained by the scheme in its other role on the actuarial side.

A spokesman for the scheme said: "As part of a review, we are continuing to work with Watson Wyatt on the actuarial and benefits side but have decided to change advisors on the investment side and have appointed Hewitt."

Latest figures form Tesco's annual report for 2007/08 showed on an IAS19 accounting basis the group had a pension deficit of £603m (€761m), on a post-tax basis, although total assets for all the company's DB schemes - primarily the UK and Ireland - amounted to £4.1bn.

As a result, the report claimed the Tesco plc pension scheme was "estimated to be broadly fully-funded" on an actuarial valuation basis, to the end of December 2007.

Details of the last triennial valuation on March 31, 2005 showed the UK DB scheme had assets of £2.6bn and a deficit of £153m, providing it with a funding level of 95%.

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