UK - Cashmere producer Dawson International will see costs for its three UK final salary pension schemes increase by £1.8m.
The company is increasing its pension contributions in advance of formal actuarial evaluations on two of its schemes in April.
The increase was revealed in Dawson’s final results for 2002, in which chairman Ian Irvine said such costs would impact overall financial performance.
He explained: “The financing of pension fund deficits in light of the dramatic fall in stock-market values, will continue to impair financial performance in the short-term.”
Dawson’s three UK schemes, which are all open to new members, have a total value of £78m, but currently have an FRS17 deficit of £22m before deferred tax.
A company statement stated: “The increase in pension costs is as a result of reduced scheme asset values and increases in projected liabilities – both of these are a function of current financial market performance.”
Business support provider Amey is also expecting negative news from its pension fund, with a circular to shareholders stating that the company was expecting FRS17 figures to show “significant charges”.
The circular added: ”Because Amey voluntarily adopted FRS17 last year [the charges] will be included in the group accounts for the year ended December 31, 2002.”
But the company’s statement tried to diffuse fears over its financial health.
“In the event that the adoption of FRS17 causes the group to have net liabilities, this would not cause a breach of the Continuing Group’s new banking facilities.”
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.