Atos Origin pursues pension scheme redesign in its UK operations
Paris – Atos Origin, an international IT services company, today announces that it has reached an agreement and signed a Memorandum of Understanding with the Trustees of its main defined
benefit pension arrangements in the UK, mitigating the impact resulting from the application of the statutory funding objectives of the Pensions Act 2004.
This agreement in principle follows discussions engaged since early 2007 with the UK Trustees to redesign employee benefits, as stated in the half-year report at the end of June 2007.
This agreement, subject to the formal amendment of individual scheme’s rules, would lead to:
» replace company defined benefit schemes by defined contribution schemes as of April 2008
» improve the conditions of the defined contribution schemes for all UK employees therefore reinforcing the market competitiveness of the Atos Origin pension schemes
As a result, out of the net pension provision of EUR 220 million held in Atos Origin consolidated accounts in respect of the schemes concerned by this agreement,
» the Group has agreed to accelerate the funding of the existing pension deficit by EUR 71 million in 2008, which will result in an increase in plan assets as reported by the Group
in its accounts and thus a decrease of corresponding provisions, at current market conditions.
» existing UK defined benefit obligations will be simplified and clarified which is expected to further reduce pensions liabilities reported by the Group in its accounts by
approximately EUR 80 million.
The Group will continue in the future the implementation of its strategy to substitute defined benefits schemes by defined contributions.