29 Mar 2007, 11:57
The value of the plan is Â£21.9 billion which is Â£3.4 billion less than the amount required to fund members.
RM are funding the deficit over 17 years by agreeing to pay Â£260 M a year.
The deficit is not Â£6.6 billion which RM are required to include in its accounts and is calculated on a different basis from the Â£3.4 billion deficit that the trustee is concerned with.
Plus we've put away Â£1 billion which will be payed into the plan if it is required before the deficit is funded.
These arrangements have been described by the plan's independent actuary as 'a significant step forwards' and provides significantly greater security for your plan benefits.
No changes are being made to what we pay or what we receive as a result of theses arrangements.