De La Rue PLC De La Rue - Pension Indexation Update (0347X)
21 November 2017 - 6:00PM
UK Regulatory
TIDMDLAR
RNS Number : 0347X
De La Rue PLC
21 November 2017
DE LA RUE PLC
De La Rue announces change of pension indexation from RPI to
CPI
21 November 2017
De La Rue plc (De La Rue, the "Company" or the "Group"), the
world's leading anti-counterfeiting and security specialist for
currency, identity, and brand protection, today announces that the
Group's Pension Trustee (the "Trustee") has decided to change
indexation of future increases from RPI to CPI for its UK defined
benefit pension scheme (the "Scheme"), effective from April
2018.
This change is expected to reduce the Scheme's liabilities and
corresponding deficit by cGBP70m on an accounting basis, which will
be reflected in the 2017/18 full year financial accounts.
The Scheme has been closed to new members since 2010 and to
future accrual since 2013.
Following a request from the Company and a detailed legal
review, the Trustee concluded that CPI is currently a more suitable
index for the calculation of annual increases in the Scheme. CPI is
used by the UK government for public sector pensions and is
increasingly being used by businesses across the UK.
At the time of the Company's last triennial valuation in April
2015, the Scheme's underlying actuarial funding deficit increased
to GBP252m, GBP92m higher than in 2012, despite cGBP70m
contributions made to the Scheme by the Company in that period. The
indexation change is part of a broader range of initiatives being
explored with the Trustee to put the Scheme on a stronger
foundation for the future.
The funding plan agreed in June 2016 to eliminate the deficit
over a period of 12 years will remain in place until the conclusion
of the next triennial review commencing in April 2018.
Year ended 31 March 2018 2019 2020 2021 2022 2023-2028
========================== ===== ===== ===== ===== ===== ==========
Annual cash contribution 23.0
(GBPm) 13.5 20.5 21.3 22.2 23.1 p.a.
========================== ===== ===== ===== ===== ===== ==========
Jitesh Sodha, Chief Financial Officer of De La Rue,
commented:
"We welcome the Trustee's decision to change the pension
indexation. There has been a thorough review and comprehensive
legal advice taken by the Trustee and the Company. This change in
indexation will reduce risks for the members and put the Scheme on
a stronger footing and should help better secure pensions for
current and deferred pensioners."
De La Rue plc's LEI code is 213800DH741LZWIJXP78.
Enquiries:
De La Rue plc +44 (0)1256 605000
Jitesh Sodha Chief Financial Officer
Lili Huang Head of Investor Relations
Brunswick +44 (0)207 404 5959
Katharine Spence
Oliver Hughes
Notes to editors
1. At 5 April 2015, the Scheme had 7,821 members, including
3,720 deferred members and 4,101 pensioners. It had total
liabilities of GBP1,147m and assets of GBP895m.
About De La Rue
De La Rue's purpose is to enable every citizen to participate
securely in the global economy. As a trusted partner of
governments, central banks and commercial organisations, De La Rue
provides products and services that underpin the integrity of
trade, personal identity and the movement of goods.
As the world's largest designer and commercial printer of
banknotes, De La Rue designs, manufactures and delivers banknotes,
banknote substrates and security features to customers in a world
where currency will continue to be a key part of the developing
payments eco-system. De La Rue is the only fully integrated
supplier of both paper and polymer banknotes, and creates security
features that ensure banknotes are protected against
counterfeiting.
De La Rue is the world's largest commercial designer and printer
of passports, delivering national and international identity tokens
and software solutions for governments in a world that is
increasingly focused on the importance of a legal and secure
identity for every individual.
De La Rue also creates and delivers secure product identifiers
and 'track and trace' software for governments and commercial
customers alike to help to tackle the challenge of illicit or
counterfeit goods and the collection of revenue and excise
duties.
De La Rue is listed on the London Stock Exchange (LSE:DLAR). For
further information visit www.delarue.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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