Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 45

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 45
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| LLOYDS BANKING GROUP PLC | 2025HALF-YEAR RESULTS |

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED) (continued)

Note 7: Retirement benefit obligations continued

The charge to the income statement in respect of pensions and other post-retirement benefit schemes is

comprised as follows:

|                                      | Half-yearto 30 Jun2025£m |     | Half-yearto 30 Jun2024£m |     | Half-yearto 31 Dec2024£m |
| Defined benefit schemes              |                      -15 |     |                      -21 |     |                       10 |
| Defined contribution schemes         |                      285 |     |                      297 |     |                      240 |
| Total charge to the income statement |                      270 |     |                      276 |     |                      250 |

The principal assumptions used in the valuations of the defined benefit pension schemes were as follows:

|                                                           | At 30 Jun2025% |     | At 31 Dec2024% |
| Discount rate                                             |           5.61 |     |           5.55 |
| Rate of inflation:                                        |                |     |                |
| Retail Price Index (RPI)                                  |           2.75 |     |           2.97 |
| Consumer Price Index (CPI)                                |           2.25 |     |           2.52 |
| Rate of salary increases                                  |           0.00 |     |           0.00 |
| Weighted-average rate of increase for pensions in payment |           2.67 |     |           2.69 |

In July 2024, the Court of Appeal handed down a judgment (Virgin Media Limited v NTL Pension Trustees Limited)

which potentially has implications for the validity of amendments made by pension schemes that were contracted

out on a salary-related basis between 6 April 1997 and the abolition of contracting-out in 2016. The Government in

June 2025, recognising that schemes and sponsoring employers need clarity around scheme liabilities, announced it

will introduce legislation to give affected pension schemes the ability to retrospectively obtain written actuarial

confirmation that historic benefit changes met the necessary standards. The Group is carrying out a review of

scheme amendments to decide whether any subsequent actions are required. The Group will continue to monitor

developments.

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