- Outsourcing group Capita said it had agreed to a phased £176m deficit reduction plan with the trustees of its pension scheme.

The plan was in line with a commitment made by the company in January to reduce its pension deficit over the medium term, as a priority.

The actuarial deficit at 31 March 2017 was £185m and the recovery plan would involve payments of £176m, with £42m to be paid in 2018, £71m in 2019, £59m in 2020 and £4m in 2021.

The plan reflected higher-than-expected proceeds from asset disposals and incorporated steps to continue to lower the level of investment risk in the scheme.

'This agreement is an important milestone in Capita's transformation and a further reflection of the importance we place on good corporate responsibility,' chief executive Jon Lewis said.

'I made a commitment to our stakeholders to address our pension deficit shortly after I joined Capita and I am pleased that our financial strength and successful disposal programme have allowed us to deliver on this.'

At 2:08pm: [LON:CPI] Capita Group The PLC share price was -3.47p at 106.68p

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