Business
Transfer of Rank Pension Plan
Transfer of Rank Pension Plan.
About this update from Rank Group Plc
[{"type":"text","content":"\n Rank Group PLC\n28 February 2008\n\nFor Immediate Release 28 February 2008\n\n\n\n The Rank Group Plc ('Rank')\n\n\n\n Transfer of the Rank Pension Plan ('Pension Plan')\n\n\n\nThe Rank Group Plc ('Rank' or 'the Group') announces that it has entered into a\nseries of agreements with the Trustee of the Rank Pension Plan and Rothesay Life\n(an FSA-regulated insurance company and wholly owned subsidiary of Goldman\nSachs), to transfer the assets and liabilities of the Pension Plan to Rothesay\nLife.\n\nThe transfer will secure the accrued benefits for the members of the Pension\nPlan and will remove the remaining financial risks and liabilities in relation\nto the Pension Plan from Rank. As a result of the transfer, Rank will no longer\nbe required to make remaining scheduled contributions totalling £30.8m, which\nthe Group agreed with the Pension Trustee at the time of the sale of Deluxe Film\nServices in 2006.\n\nUpon completion of the transfer Rank expects to receive a cash payment of at\nleast £20m, representing the company's allocation of the expected surplus within\nthe Pension Plan after an appropriate sharing with the Pension Plan's members\nand any anticipated costs, including tax, associated with the transfer. The\ncash payment will be used to reduce Group borrowings.\n\nThe transfer is subject to clearance from HM Revenue & Customs regarding the tax\ntreatment of the transfer. Rank expects this clearance to be obtained by May\n2008 with completion of the transfer expected in June 2008.\n\nCommenting on the transaction, Peter Gill, finance director of Rank said:\n\n'The transfer of all the obligations and financial risk of Rank's defined\nbenefit pension plan to an insurer is in step with the changes we have made to\nreposition the Group in recent years. With the financial benefits that this\ntransfer provides, Rank will be better placed to address its near-term\nchallenges and to grasp its long-term opportunities. In addition, members of\nthe pension plan will benefit from the high level of security provided by\nRothesay Life.\n\nThis transfer is the result of an extensive review that included consideration\nof several options and discussions with a number of interested parties. We\nbelieve that the chosen option and the transfer announced today represent the\nbest outcome for all concerned.'\n\nEnquiries\n\nThe...