Pension threat at Johnson Matthey
JOHNSON Matthey, which operates its catalysts division at Billingham, says it is considering closing its final salary pension scheme in response to a £173m shortfall in its fund.
The company has entered into a minimum 90 day consultation period over the structure of future pension arrangements for its UK employees.
Three years ago the fund had a surplus of £26m compared to the current £173m deficit.
The company has agreed to eliminate the deficit by making additional cash contributions of £23.1m per year over the next 10 years from April, 2010. It is also proposing, subject to consultation, that from April 1 to replace it current final salary pension scheme with a non-contributory career average salary, defined benefit scheme. This career average salary scheme was introduced for all new employees in the UK from April 1, 2006. The result of the consultation process will be known in early 2010.
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