The Co-operative Group pension scheme surplus has remained "largely unchanged" over the past year, falling from £1.973 in 2020 to £1.931bn in 2021, according to the group's annual financial results.

The group confirmed that whilst there were some "significant movements" that resulted in a £0.5bn increase in liabilities, this was offset by a corresponding £0.5bn increase in assets.

The increase in liabilities was attributed to a change in the interest rate used to value pension liabilities from 1.97 per cent to 1.47 per cent.

The increase in assets, meanwhile, reflected the scheme's investments in gilts and credit assets, which it stated had increased in value, and was offset by a reduction of £400m resulting from the Pace pensioner buy-in transaction in May 2020.

The group's accounts also included a £3m charge for historical pensions liabilities relating to guaranteed minimum pension (GMP) equalisation in 2020 for members of the scheme who have previously transferred out, in light of the recent high court ruling on this issue.

In addition to this, the group confirmed that it has partnered with the Make My Money Matter initiative in a commitment to further align the groups pension investments with the values of the Co-op and its members, and to engage with colleagues on where their pension is invested.

Commenting on the group's results, Co-op chief executive, Steve Murrells, said: "In 2020 we lived through a perfect storm, with every part of our lives turned upside down - socially and economically, mentally and physically.

"Along the way we discovered much about our society, some of it brilliant and inspiring, and some of it quite ugly thanks to the unfairness and inequality Covid-19 has revealed and exacerbated.

"During the last few years, we've created a business that is truly focused on delivering clear value and benefits for our members, customers and their communities.

"All that work proved to be essential in giving us the ability to respond to the immediate and sustained demands which the pandemic brought with it."

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