RS Group plc – Annual report – 31 March 2026
Industry: distribution
10 Retirement benefit obligations (extract 1)
Deficit position and funding
The funding of the UK scheme is assessed using assumptions in accordance with the advice of independent actuaries. These assumptions may be different to those used for the accounting valuation. The last triennial funding valuation was carried out as at 31 March 2022 and showed a deficit of £36.4 million on a statutory technical provisions basis. The Trustee and the Company agreed a recovery plan to eliminate this deficit over time. Under this plan, the Group agreed to make deficit contributions of £11.1 million per annum with the aim that the scheme will be fully funded on a statutory technical provisions basis by 30 September 2025. This recovery plan has now been completed. The 31 March 2025 triennial valuation is still being processed, however the preliminary results show that the UK Scheme is likely to be in surplus on a statutory technical provisions basis.
The rules of the UK scheme give the Trustee powers to wind up the scheme, which it may exercise if the Trustee is aware that the assets of the scheme are insufficient to meet its liabilities. Although the scheme was in deficit on a statutory funding basis at 31 March 2022, the Trustee has confirmed that it has no current intention to exercise its power to wind up the scheme.
Under the UK scheme’s rules the power to wind up the scheme and augment benefits is with the Trustee and, therefore, under IFRIC 14 the Group does not have an unconditional right to any surplus that may arise. On that basis, the defined benefit net asset at 31 March 2026 has been restricted to £nil (2024/25: £nil). There is no additional liability as at 31 March 2026 (2024/25: £5.4 million) as the recovery plan has been completed and no further deficit contributions are payable.
Based on the funding position as at 31 March 2026, in the year ending 31 March 2027 the Group expects to pay £nil contributions to the UK scheme, and £0.4 million to the other defined benefit schemes.
10 Retirement benefit obligations (extract 2)
Balance sheet
The amounts included in the balance sheet arising from the Group’s assets/(obligations) in respect of its defined benefit schemes was:
