Business
Additional US pension payment
Additional US pension payment.
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n \nRNS Number : 8663Y Morgan Advanced Materials PLC 11 December 2017 \n\n \n \nPress Release\n \nMorgan Advanced Materials plc \n11 December 2017\n \n \nMorgan Advanced Materials plc today announces that the group has elected to make an accelerated cash contribution of an additional US$36million to the group's US defined benefit pension scheme in December 2017. \n \nThe US defined benefit pension scheme had a deficit under IAS19 at 30 June 2017 of ca. US$46million, since when the funding position has improved due largely to positive returns on the asset portfolio. In recent years, the group has contributed between US$10-11million per annum to the US defined benefit schemes under a funding recovery plan that was anticipated to close the remaining deficit over a 5 year recovery period to 2022.\n \nFollowing this additional payment, the US defined benefit pension scheme will be close to full funding on an IAS19 basis and no further deficit recovery payments are anticipated. As a result the group's total ongoing payments to the defined benefit pension schemes across the group are currently estimated to reduce from the previously expected £25 million per annum to ca. £16.5 million per annum from 2018.\n \nThe payment into the US defined benefit pension scheme is eligible for US corporation tax relief, and will also lead to a reduction in the US Pension Benefit Guarantee Corporation levy of ca. US$1 million per annum from 2018 onwards.\n \nThis payment will lead to a reduction in the IAS19 net defined benefit pension obligation and an increase in net debt by US$36million in December 2017. \n \nFor further enquiries:\n \n\n\n\n\nPete Raby\n\n\nMorgan Advanced Materials plc\n\n\n01753 837 000\n\n\n\n\nPeter Turner\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \nAlison Kay\n \n\n\nBrunswick\n\n\n \n0207 404 5959\n \n\n\n\n\n \n \n \nThe next scheduled update is the Group's Preliminary Full Year results presentation on 27 February 2018.\n \n\nThis information is provided by RNSThe company news service from the London Stock Exchange END MSCMMMGZKRDGNZM\n ","length":4368,"tagName":"div"}]