2nd Oct 2013 08:44
LONDON (Alliance News) - Taylor Wimpey PLC Wednesday said it has completed the merger of its legacy pension schemes, to create the Taylor Wimpey Pension Scheme.
The residential developer with operations in the UK and Spain said it merged the George Wimpey Staff Pension Scheme and the Taylor Woodrow Group Pension & Life Assurance Fund to create the single new scheme.
Taylor Wimpey also said it has implemented a pension funding partnership which is structured to deliver to the new TWPS a 15-year income stream together with final conditional payments of up to GBP100 million in order to reduce its pension deficit on a funding basis.
"This will benefit the existing members through a simplified management structure and will result in lower administration costs whilst providing a way of managing future deficit repair contributions," Ryan Mangold, finance director, said in a statement.
"At the same time we have also implemented a pension funding partnership principally backed by certain show home assets of Taylor Wimpey which will provide increased security for the members and greater flexibility for Taylor Wimpey," Mangold added.
The new single pension scheme will have GBP1.8 billion in assets under its management, with administration costs expected to drop by GBP800,000 per annum because of the merger.
Taylor Wimpey said there would be no initial change to the combined deficit contributions, which will remain at GBP46 million per annum until the initial valuation of the TWPS is completed within 12 months from the December 31 2013 valuation date.
Taylor Wimpey shares were Wednesday quoted at 99.96 pence, down 1.34 pence, or 1.3%.
By Samuel Agini; [email protected]; @samuelagini
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