Successful completion of pension scheme merger
2 October 2013
Taylor Wimpey plc
Successful completion of pension scheme merger
Taylor Wimpey is pleased to announce that it has completed the merger of its legacy pension schemes, the George Wimpey Staff Pension Scheme (GWSPS) and the Taylor Woodrow Group Pension & Life Assurance Fund (TWGP&LAF), to create a single new scheme called the Taylor Wimpey Pension Scheme (TWPS). In connection with this merger, Taylor Wimpey has also implemented a pension funding partnership which is structured to deliver to the TWPS a 15 year income stream together with final conditional payments of up to £100 million. As a result of the implementation of the pension funding partnership, Taylor Wimpey's pension deficit on a funding basis will reduce.
Ryan Mangold, Group Finance Director, commented:
"We are very pleased to have received full support from the trustees of the GWSPS and the TWGP&LAF to complete the pension scheme merger and create a single pension scheme. This will benefit the existing members through a simplified management structure and will result in lower administration costs whilst providing a way of managing future deficit repair contributions.
At the same time we have also implemented a pension funding partnership principally backed by certain show home assets of Taylor Wimpey which will provide increased security for the members and greater flexibility for Taylor Wimpey."
The TWPS will manage assets of £1.8 billion and administration costs are expected to be reduced by approximately £0.8 million per annum as a result of the merger.
There is no change to the members' pension entitlement as a result of the merger, nor any initial change to the combined deficit contributions that will remain at £46 million per annum until the initial valuation of the TWPS is completed within 12 months from the 31 December 2013 valuation date.
- Ends -
For further information please contact:
Taylor Wimpey plc Tel: +44 (0) 1494 558323
Ryan Mangold, Group Finance Director
Debbie Sempie, Investor Relations
RLM Finsbury Tel: +44 (0) 20 7251 3801
Faeth Birch
Sarah Heald
Notes to editors:
Taylor Wimpey plc is a UK-focused residential developer which also has operations in Spain. Our vision is to become the UK's leading residential developer for creating value and delivering quality.
For further information, please visit the Group's website:
http://plc.taylorwimpey.co.uk
This information is provided by RNS
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