Back to news 1 January 2013

Update following the Actuarial Valuation

Dear Members

As most of you will know, as well as agreeing what contributions the Company will pay to Reuters Pension Fund (the Fund), the negotiations included revisiting our Parent Company Guarantee (PCG) and the mechanism for reviewing pensioner discretionary increases.

I am pleased to say that we have maintained our prudent valuation assumptions and we have agreed a plan with the Company to make good the deficit at 31 December 2010 over the next 8 years. We have also agreed a substantial increase in the level of PCG (which provides additional support from Thomson Reuters Corporation in certain circumstances where the Principal Employer is no longer able to support the Fund).

Further we have concluded a satisfactory arrangement regarding pensioner discretionary increases. The Company has agreed to pension increases in line with increases in the Retail Prices Index (RPI) up to a maximum of 2.5% for each of the next 10 years. This makes the additional increases consistent with those provided on pensions being earned by current employees who are members of the Fund. These additional increases are being funded by the Company in addition to funding the deficit that has arisen since 2008.

This is a generous settlement by the Company and we have Tom Glocer and the Thomson Reuters management team to thank for it. Tom stood by his commitment that the Company would find a solution to the provision of discretionary pension increases from the Fund. I'm sure we would like to wish him all the best for his future now that he has retired.

Greg Meekings