Merger of the UK defined benefit pensions schemes

RNS Number : 7488I

Renold PLC

08 July 2013

 



Renold plc

("Renold", "the Company" or "the Group")

Merger of the UK defined benefit pensions schemes

Renold, a leading international supplier of industrial chains and related power transmission products, announces the completion of the merger of the UK defined benefit pension schemes.

On 26 March 2013 Renold announced an agreement with the Trustees of the three UK defined benefit pension schemes to merge, supported by an asset backed funding structure, that would lead to a £1.0m annual reduction in cash funding costs.  The merger of members into the Renold Supplementary Pension Scheme 1967 (RSPS) would be followed by a wind up of The Renold Group Pension Scheme (RGPS) and the Jones and Shipman Retirement Benefits Plan (1971) (J&S).  The merger was due to complete during the first half of the current financial year.

The merger of the three schemes took place on 26 June 2013 and the start of the formal wind up of the RGPS and J&S was triggered on the following day.  A total of 2,604 members of the RGPS and J&S were entitled to receive a lump sum on the wind up of their schemes and 1,307 (50.2%) members chose this option.

The total amount of liabilities discharged during the wind up will be just under £11.0m.  These sums were funded through the liquidation of a similar amount of scheme assets with the administrative costs of the exercise being funded by the Company. The net impact of the merger on the Group balance sheet will be disclosed in the Interim Results in November 2013.  The 1,297 members who did not elect to receive a lump sum have been transferred to the RSPS.

All members of the RSPS, including those who transferred as part of the merger, will continue to receive their benefits in full and unchanged. The RSPS has now been re-named as the Renold Pension Scheme.

Robert Purcell, Chief Executive of Renold plc, said:

"The merger of the UK defined benefit pension schemes brings a significant reduction in the Group's annual cash costs with a much lower administrative burden.  The merger is in line with the Group's stated objectives of lowering our breakeven point and carefully managing cash flow."

8 July 2013

ENQUIRIES:

Renold plc	0161 498 4500
Robert Purcell, Chief Executive
Brian Tenner, Finance Director
Arden Partners	020 7614 5917
Chris Hardie
College Hill	020 7457 2020
Mark Garraway
Helen Tarbet

NOTES FOR EDITORS

Renold is a global leader in the manufacture of industrial chains and also manufactures a range of torque transmission products which are sold throughout the world to a broad range of original equipment manufacturers and distributors. The Company has a well deserved reputation for quality that is recognised worldwide. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel and mining.

Further information about Renold can be found on the website at: www.renold.com

 

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