Marks & Spencer, the UK clothing retailer, has turned a pensions shortfall of more than £1bn (€1.4bn) into a £127m surplus in the past year, after altering benefits and forming an innovative property partnership to give the pension fund a steady income.

In its results for the half year to September 29, Marks & Spencer said its changes to pensions - including asking scheme members to either increase their contributions or accept limitations to benefits - had saved the company £95m so far.