DWHT Dewhurst Group Plc

 

TIDMDWHT 
 
RNS Number : 9996O 
Dewhurst PLC 
08 July 2010 
 
 
 
 
                                  Dewhurst PLC 
                          (the "Company" or "Dewhurst") 
 
    Closure of the Group's defined benefit pension scheme to future accrual 
 
 
Dewhurst plc yesterday concluded a two month consultation period with employees 
over its proposal to close the Group's defined benefit pension scheme to future 
accrual. 
Ever since the scheme assets dropped below the liabilities back in the late 
1990's, the Board have regularly discussed the future of the pension scheme. 
Over the years various steps have been put in place to try and reduce the 
deficit, whilst keeping the scheme open to future accrual.  In September 2007 
the IAS19 deficit stood at GBP3.8m and the Company agreed to make annual 
contributions of GBP0.5m to clear the deficit. Despite making these extra 
payments there is no indication of the deficit decreasing and instead the latest 
IAS19 pension valuation reported in September 2009 showed assets of GBP18.3m and 
liabilities of GBP24.4m giving rise to a deficit increase from GBP3.8m to 
GBP6.1m. The increase in the deficit is due to various factors including 
fluctuating asset returns and increasing life expectancy. 
With the cost of final salary pension provision continuing to increase the Board 
reluctantly feel the closure of the defined benefit scheme to future accrual is 
now essential in order to secure the pensions already accrued, achieve future 
risk reduction and protect the long term future of the Group. Closing the scheme 
to future accrual will help limit the increase in liabilities and help the Group 
to fulfill its commitment to eliminate the current deficit. 
Current contributing members, who from 1st October 2010 will no longer build up 
future benefits in their defined benefit scheme, will be given the choice of 
building up future pension benefits in a new proposed Group defined contribution 
scheme. 
For further details please contact: 
 
+------------------------------------+------------------------+ 
| Dewhurst Plc                       | Tel: +44 (0) 208 607   | 
|                                    | 7364                   | 
+------------------------------------+------------------------+ 
| Jared Sinclair                     |                        | 
+------------------------------------+------------------------+ 
|                                    |                        | 
+------------------------------------+------------------------+ 
| Seymour Pierce Ltd                 | Tel: +44 (0) 207 107   | 
|                                    | 8000                   | 
+------------------------------------+------------------------+ 
| Nicola Marrin/Stewart Dickson      |                        | 
+------------------------------------+------------------------+ 
|                                    |                        | 
+------------------------------------+------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCBUGDRDDGBGGR 
 

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