15th Mar 2007 07:01
Atkins (WS) PLC15 March 2007 WS Atkins plc proposed Pension changes WS Atkins plc ('Atkins' or 'the Company') announces today that it is enteringinto a period of consultation with its staff on proposed changes to the finalsalary sections of the Atkins Pension Plan ('the Plan'). These proposed changeswill impact approximately 1,900 employees. As noted in our interim report dated 23 November 2006, the Company has been indiscussions with the Trustees of the Plan to agree ways to limit any furtherincreases in its defined benefit liabilities, other than for protected schemes.After extensive negotiation, the Company and the Trustees have jointly agreedthat members will cease to accrue a pension under the final salary section ofthe Plan and will in future accrue a pension under the defined contributionsection of the Plan. The staff affected will retain the link to final salaryfor accrued service up to 1 July 2007 and for the next three years the Companywill pay an additional defined contribution pension benefit of 2% of salary. In addition, the Company has agreed a funding programme with the Trustees tosignificantly reduce the Plan's actuarial deficit. The actuarial deficit as at30 June 2006 was estimated at £187 million. In the first half of the yearending 31 March 2007 the Company made voluntary accelerated contributions of£12.5 million, of which £10 million was after 30 June 2006. In the second halfof this year, the Company intends to make a further £12.5 million acceleratedcontribution as planned. If the changes to the Plan are implemented followingconsultation with the members, the Company will inject a further £50 million in2007/8 and £30 million per annum for the following three years, subject tofurther review following the actuarial valuation in April 2010. The totalplanned additional contributions over the four year period from 30 June 2006 aretherefore £162.5 million. The Company believes that these changes are in the best interests of both themembers of the Plan and the shareholders of Atkins and that they will secure thebenefits of all of the members of the Plan, including the current and deferredpensioners. These changes will not impact the Company's IAS 19 deficit and they are notanticipated to significantly impact the Group's earnings for the year ending 31March 2008. The consultation process will commence today and will last for at least 60 days.It is proposed that these changes will become effective on 1 July 2007. These proposals do not affect approximately 700 members of the Plan whosebenefits are protected through either a contractual obligation or statutoryprotection. They also do not affect the members of the Railways Pension Scheme,450 staff, whose benefits have statutory protection. ENQUIRIES:Robert MacLeod, Group Finance Director Tel: + 44 (0) 1372 726140 James Garthwaite, Group Communications Director Atkins (www.atkinsglobal.com) plans, designs and enables the delivery of complexcapital programmes for clients in the public and private sectors across theworld. Atkins is the largest multi-disciplinary consultancy in Europe; thelargest engineering consultancy in the UK; and the third largest design firm inthe world. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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