Cookson will offer deferred members of its UK final salary pension scheme an enhanced transfer value (ETV) as part of efforts to reduce liabilities.
The arrangement will see members that choose to participate leave the final salary pensions scheme to join a defined contribution (DC) pension scheme at an enhanced value, including the retention of the retail prices index (RPI), which will be used to value any deferred benefits transferred.
In addition, a schedule of additional contributions to eliminate the scheme’s deficit have been agreed, under which the materials science organisation is making payments of £7 million per annum until February 2016.
The level of these payments will be reviewed based on the scheme’s next triennial valuation as of December 2012, which should be available in mid-2013.
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