Unilever UK pensions changes

Unilever PLC
01 March 2007

NEW ARRANGEMENTS FOR UNILEVER UK PENSIONS



Unilever UK today reaffirmed its commitment to its final salary pension scheme
for existing employees in the UK but announced that it is proposing to close the
scheme to new employees.



The decision follows a thorough review of the company's UK pension arrangements.
  These proposals aim to ensure that the company continues to provide
competitive pensions for employees on a sustainable basis, whilst at the same
time having greater certainty about the future cost of pensions.



The decision is not related to the current deficit as agreement was reached
between the Company and the Trustees on this matter a year ago. Under the terms
of the agreement Unilever has committed to make additional payments, including
£510m in the three years to April 2008, aimed at eliminating the deficit within
eight years.



All proposed changes to the UK scheme will need to be agreed by the Fund
Trustees and are subject to consultation with employees.



The proposed new UK scheme for new employees, which is intended to take effect
later in 2007, will be a hybrid arrangement.  There will be a defined benefit
component, based on career average, covering pensionable earnings up to a
threshold of £35,000 pa.  Above this threshold there will be a defined
contribution component.



From January 1st 2008, employee members of the existing scheme will be asked to
increase their contribution to the Fund from five to seven percent of their
salary.  Alternatively, they will be able to join the new scheme.



Pensioner members and deferred pensioner members will be unaffected by these
proposed changes.





                                     -o0o-





1st March, 2007





-          Notes:



•         In many countries the Unilever Group operates defined benefit pension   
plans based on employee pensionable remuneration and length of service. The   
majority of these plans are externally funded.  The Group also provides    other
post-employment benefits, mainly post-employment medical plans in the    United
States.  These plans are predominantly unfunded.  The Group also    operates a
number of defined contribution plans, the assets of which are    held in
external funds.


•         In December 2005 Unilever announced the establishment of Univest, a
new pension asset pooling vehicle which gives the opportunity to leverage the
strengths of Unilever and its national-based pension funds.



•         Local Unilever pension funds retain full ownership of their assets.
All the sub-funds are ring-fenced from one another and enable each individual
Unilever pension fund to continue to define its own geographical investment
strategy.



•         Unilever UK Pension scheme members:



     o        40,000 pensioners

     o        40,000 deferred pensioners

     o        7,000 active employees



•         Market value of the Unilever UK Pension Fund at 1st January, 2007:
£5.0 billion



Existing scheme



  •  The current UK scheme will be subject to the following proposed changes:



     o     Contributions will increase from 5% to 7% effective 1 January 2008

     o     'Guaranteed' pension increases linked to inflation will be capped at 
     2.5% for pension building up from 1 January 2008.  The Company will retain 
     the discretion to grant increases above this limit



Proposed new scheme



  • The new UK scheme will have 2 tiers of benefit:



     o     A pension based on career average earnings, covering pensionable earnings
up to a threshold at outset of £35,000. Above the £35,000 threshold, there will
be a defined contribution arrangement with a Company contribution of 12.5% of
earnings.  Employees will alternatively be able to take this Company
contribution as cash

     o     For this package of benefits, employees will pay at 5% on pensionable
earnings up to the £35,000 threshold - no employee contributions are payable
above.



  • Existing members of the UK Pension Fund will have the option to switch to
    the proposed new scheme





About Unilever



Unilever's mission is to add vitality to life.  We meet everyday needs for
nutrition, hygiene and personal care with brands that help people feel good,
look good and get more out of life.



Unilever is one of the world's leading suppliers of fast moving consumer goods
with strong local roots in more than 100 countries across the globe.  Its
portfolio includes some of the world's best known and most loved brands
including twelve €1 billion brands and global leadership in many categories in
which the company operates.  The portfolio features brand icons such as Knorr,
Hellmann's, Wall's, Flora, Bertolli, Dove, Lux, Lynx, Persil, Domestos, and
Marmite.



Unilever has around 179,000 employees in approaching 100 countries and generated
annual sales of €40 billion in 2006.  For more information about Unilever and
its brands, please visit www.unilever.com.





SAFE HARBOUR STATEMENT:

This announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United States Private
Securities Litigation Reform Act of 1995.  Words such as 'expects',
'anticipates', 'intends' or the negative of these terms and other similar
expressions of future performance or results, including financial objectives to
2010, and their negatives are intended to identify such forward-looking
statements.  These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and other
factors affecting the Group.  They are not historical facts, nor are they
guarantees of future performance.  Because these forward-looking statements
involve risks and uncertainties, there are important factors that could cause
actual results to differ materially from those expressed or implied by these
forward-looking statements, including, among others, competitive pricing and
activities, consumption levels, costs, the ability to maintain and manage key
customer relationships and supply chain sources, currency values, interest
rates, the ability to integrate acquisitions and complete planned divestitures,
physical risks, environmental risks, the ability to manage regulatory, tax and
legal matters and resolve pending matters within current estimates, legislative,
fiscal and regulatory developments, political, economic and social conditions in
the geographic markets where the Group operates and new or changed priorities of
the Boards.   Further details of potential risks and uncertainties affecting the
Group are described in the Group's filings with the London Stock Exchange,
Euronext Amsterdam and the US Securities and Exchange Commission, including the
Annual Report & Accounts on Form 20-F.  These forward-looking statements speak
only as of the date of this announcement. Except as required by any applicable
law or regulation, the Group expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Group's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.






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