28 May 2010
Tate & Lyle's new boss, Javed Ahmed, has unveiled a
significant shake-up of the starches and sweeteners group. His
plans included moving the firm away from its historic sugar
business and closure of the final salary scheme to future
accrual.
The firm reported this morning that underlying profits before
tax dropped by 7% to £229m in the year (down from £247m
the previous year). He also unveiled changes including the closure
of the group's final salary pension scheme to active members.
Coupled with the removal of early retirement discretion last year
this had brought a one-off gain of £42m.
The UK final salary pension scheme will close to future accrual
from April 2011 after starting a consultation in November 2009 (see
TPAS news item dated 6th of November 2009). The group confirmed it
will maintain its current pension plans in its other countries of
operation. The decision will affect 400 active members in the UK.
The scheme had already been closed to new members from April 2002.
On full closure members will be offered access to the company's
Stakeholder pension scheme.
