UK - Two schemes for railway manufacturers are undergoing a heavyweight review. Bombardier Transportation said it had been obliged to have an actuarial valuation of both its UK schemes, and that an announcement would be made early in 2002.
The company said the review was obligatory following the purchase in April of Adtranz by Canada’s Bombardier Inc. The UK operations of both became Bombardier Transportation, although no changes were made to either companies’ pension provision arrangements.
Pensions co-ordinator for the £396m Adtranz Pension Plan, John Clarke, said: “Our strategy for investment needs to be completely reviewed in order to meet the demands of our new owners.”
While he stressed that Bombardier Transportation was “not actively looking” at closing the final salary Adtranz Pension Plan as an option, he conceded that “some heat may be applied” from Bombardier Inc.
He said: “Final salary schemes are fine and we continue to support them as a UK company. However, we have never been influenced by a company across the pond before.”
A spokesperson for the former Bombardier Transportation workers’ scheme confirmed that the review was under way but declined to comment further.
Lane Clark & Peacock is advising the Adtranz Pension Plan.
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