Business
Statement re pension scheme
Statement re pension scheme.
About this update from Smiths News Plc
[{"type":"text","content":"\n Smiths News PLC\n10 January 2007\n\n\n SMITHS NEWS ANNOUNCES REVIEW OF DEFINED BENEFIT PENSION SCHEME\n\n\nSmiths News, the UK's leading newspaper and magazine distributor, has written to\nemployees that are contributory members of the Final Salary WH Smith Pension\nTrust scheme (a Defined Benefit (DB) or Final Salary pension scheme) proposing\nchanges to the scheme.\n\nThe DB scheme was closed to new members in 1995. The proposals being put forward\nby the company and which have been discussed with the Trustees, would result in\nthe scheme now being closed to existing members. If the current proposals are\nimplemented these members would be entitled to similar defined contribution\npensions benefits to those available to employees that have joined the company\nsince the Final Salary scheme was closed to new members.\n\nClosure of the DB scheme to existing members affects only future contributions.\nIt does not change the benefits that have already been earned through membership\nof the scheme, nor does it affect members who have left the company or have\nretired.\n\nCommenting on the proposed changes, Glenn Leech, HR Director said:\n'The long term uncertainty over the cost of maintaining a final salary pension\nscheme coupled with low investment returns and the increase in life expectancy\nmean that continuing to support a final salary pension scheme is becoming\nincreasingly difficult for companies. Therefore we are today making proposals to\nmembers of the scheme which we believe to be in the long-term interest of the\ncompany and our employees.'\n\nContacts\n\nFor more information please call:\n\nKate Holgate, Brunswick Group LLP 020 7404 5959\n\n\nNotes to Editors\n\nSmiths News demerged from WH Smith on 31 August 2006. Smiths News is the UK's\nleading newspaper and magazine wholesaler delivering over 60 million\npublications to 22,000 retailers every week.\n\nApproximately 700 of Smiths News' 4,300 employees are members of the effected\nfinal salary scheme.\n\nThe company will now enter a consultation period regarding these proposals.\n\nAt demerger the Pension Trust was split into two sections: one for Smiths News\nand one for WH Smith. This involved segregating the assets and liabilities of\nthe Pension Trust to reflect the membership of the two businesses. Upon the\ndemerger, as agreed with the Trustees of the WH Smi...