Netherlands-based electronics firm Royal Dutch Philips is to pay some GBP400 million into its UK pension fund to cover a rising deficit, the company has said in its annual report.
The payment into its UK pension trust, based in Redhill, should bring it up to fully funded status. The UK fund contains some GBP1.9 billion in total funds.
The UK contribution, which the company says is in response to recent regulatory changes, is only one part of a wider package of investment in pensions from the firm. Its Dutch scheme, for example, is set to receive additional funding of E208 million.
The company expects considerable cash outflows in relation to employee benefits which are estimated to amount to E1.086 billion in 2006 (2005: E445 million), Philips said in its annual report.