Business
Buyout of the Dialight Corporation Pension Scheme
Buyout of the Dialight Corporation Pension Scheme.
About this update from Dialight Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 0187D Dialight PLC 16 March 2011 \n \n\n16th March 2011\n \n \n \n \n \nDialight plc \n \nBuyout of the Dialight Corporation Pension Scheme \n \nDialight plc (\"Dialight\" or the \"Group\") today announces that it has successfully reached agreement on the buyout of the Pension Scheme (\"the Scheme\") of its US subsidiary, Dialight Corporation (the \"Subsidiary\"). In the Group's Preliminary Results announced on 14 February 2011, the Group indicated that the cost of securing these liabilities was expected to be a minimum of £3.0 million, however, the actual cost is lower than anticipated at £2.4 million. The Group will no longer be required to make further cash contributions to the Scheme and associated costs are deductible for tax purposes.\n \nThe Subsidiary is a wholly owned US resident division of the Group and, for a number of years, has operated a defined benefit pension plan for certain US employees which is no longer open for accrual. \nThe buyout removes any further exposure from the liabilities in this Scheme. This has been achieved through providing existing members and beneficiaries the choice to receive an annuity or a lump-sum cash payment in return for agreement to the termination of the Scheme. Annuities have been secured through Prudential and all final cash payments will be made by the end of March 2011. \n \nAs at 31st December 2010, the deficit on this Scheme was £1.9 million, following cash contributions of £1.1 million made to this Scheme in 2010 as well as a further £1.1 million in 2009. The latest up-to-date actuarial valuation shows a deficit of £1.7 million. There will be a one-off non-underlying financial expense of £0.7m in the Interim Results for the half year to 30th June 2011. \n \nRoy Burton, Chief Executive, commented: \"We are pleased that we have been able to reach agreement on the buyout of our US pension scheme, something that has been very well received by its members and has worked in the best interests of all parties concerned. This agreement means that we have now successfully removed any future exposure to the liabilities of the US Scheme at a lower cost than was originally expected, which has delivered value to shareholders.\" \n \nFor further information: \n \nDialight plc\nRoy...