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ICI » Topics » ICI has given undertakings and guarantees relating to pension funds, including the solvency of the ICI UK Pension Fund, which could have an adverse effect on its results of operations and cash flow.This excerpt taken from the ICI 6-K filed Mar 21, 2007. ICI has given undertakings and guarantees relating to pension funds, including the solvency of the ICI UK Pension Fund, which could have an adverse effect on its results of operations, cash flow and/or financial condition. The Group provides retirement benefits for the majority of its former and current employees through a variety of defined benefit and, more recently, defined contribution schemes. These include the ICI UK Pension Fund (the “Fund”), which is ICI’s largest defined benefit scheme. At 31 December 2006, the Fund had liabilities of £7,568m, offset by scheme assets with a market value of £6,871m, giving a net deficit of £697m which is recorded on the Group’s balance sheet under international accounting standard IAS19 This excerpt taken from the ICI 20-F filed Mar 31, 2006. ICI has given undertakings and guarantees relating to pension funds, including the solvency of the ICI UK Pension Fund, which could have an adverse effect on its results of operations and cash flow. ICI provides retirement benefits for the majority of its former and current employees through a variety of defined benefit and, more recently, defined contribution schemes. These include the ICI UK Pension Fund (“Fund”), which is ICI’s largest defined benefit scheme. At 31 December 2005 it had liabilities of £7,770m, offset by scheme assets with a market value of £6,953m, giving a net deficit of £817m which is recorded on the Group’s balance sheet under international accounting standard IAS 19 Employee Benefits. The Fund represents 79% of the Group’s total post-retirement scheme liabilities and 85% of the Group’s total post-retirement scheme assets at 31 December 2005. The most recent valuation of the Fund revealed an increase in the funding shortfall to £657m at 31 March 2005. Given that the Fund is extremely mature, the funding deficit shortfall has to be rectified through funding from the Company. Factors such as the risk of poor future investment returns on scheme assets, changes in actuarial assumptions including mortality of scheme members, higher rates of inflation and/or falling bond-return rates used to discount the scheme liabilities, could all serve to increase the Fund deficit, thereby requiring increased future funding contributions from the Company with a resulting adverse effect on the Group’s results of operations, cash flow and financial condition.
This excerpt taken from the ICI 6-K filed Mar 14, 2006. ICI has given undertakings and guarantees relating to pension funds, including the solvency of the ICI UK Pension Fund, which could have an adverse effect on its results of operations and cash flow. ICI provides retirement benefits for the majority of its former and current employees through a variety of defined benefit and, more recently, defined contribution schemes. These include the ICI UK Pension Fund (“Fund”), which is ICI’s largest defined benefit scheme. At 31 December 2005 it had liabilities of £7,770m, offset by scheme assets with a market value of £6,953m, giving a net deficit of £817m which is recorded on the Group’s balance sheet under international accounting standard IAS 19 Employee Benefits. The Fund represents 79% of the Group’s total post-retirement scheme liabilities and 85% of the Group’s total post-retirement scheme assets at 31 December 2005. The most recent valuation of the Fund revealed an increase in the funding shortfall to £657m at 31 March 2005. Given that the Fund is extremely mature, the funding deficit shortfall has to be rectified through funding from the Company. Factors such as the risk of poor future investment returns on scheme assets, changes in actuarial assumptions including mortality of scheme members, higher rates of inflation and/or falling bond-return rates used to discount the scheme liabilities, could all serve to increase the Fund deficit, thereby requiring increased future funding contributions from the Company with a resulting adverse effect on the Group’s results of operations, cash flow and financial condition.
This excerpt taken from the ICI 20-F filed Apr 1, 2005. ICI has given undertakings and guarantees relating to pension funds, including the solvency of the ICI UK Pension Fund, which could have an adverse effect on its results of operations and cash flow. ICI provides retirement benefits for the majority of its former and current employees through a variety of defined benefit and defined contribution schemes. These include the ICI UK Pension Fund (“Fund”), which is ICI’s largest defined benefit scheme and which, at 31 December 2004, had liabilities of approximately £6.9bn. This fund accounts for approximately 85% of ICI’s retirement benefit schemes by asset value and projected benefit terms and covers approximately 76,500 former and current employees in the UK. ICI guarantees the solvency of the Fund. On 16 October 2003, ICI announced the completion of the triennial valuation of the Fund . The valuation concluded that as of 31 March 2003, the ICI UK Pension Fund had a deficit for funding purposes of £443m and a solvency ratio of 93%. ICI has agreed to make top-up contributions to the Fund of £62m per year for nine years from 2004 and has provided an asset-backed guarantee, via a wholly owned subsidiary specifically incorporated to provide the guarantee, for £250m to support its commitments to the Fund. Such asset-backed guarantee is secured by way of a fixed and floating charge over the assets of the subsidiary. At 31 December 2004, over 84% of the Fund’s assets were invested in investment grade fixed-interest and index linked securities or cash. The balance of the Fund’s assets were invested mainly in equities. Accordingly, ICI is exposed to the financial performance of its retirement benefit schemes and particularly to the financial performance of the ICI UK Pension Fund. In certain circumstances, ICI may be required to increase its top-up contributions to the Fund. This could have an adverse impact on the Group’s results of operations and cash flow. ICI ANNUAL REPORT AND ACCOUNTS 2004
This excerpt taken from the ICI 6-K filed Mar 16, 2005. ICI has given undertakings and guarantees relating to pension funds, including the solvency of the ICI UK Pension Fund, which could have an adverse effect on its results of operations and cash flow. ICI provides retirement benefits for the majority of its former and current employees through a variety of defined benefit and defined contribution schemes. These include the ICI UK Pension Fund (“Fund”), which is ICI’s largest defined benefit scheme and which, at 31 December 2004, had liabilities of approximately £6.9bn. This fund accounts for approximately 85% of ICI’s retirement benefit schemes by asset value and projected benefit terms and covers approximately 76,500 former and current employees in the UK. ICI guarantees the solvency of the Fund. On 16 October 2003, ICI announced the completion of the triennial valuation of the Fund . The valuation concluded that as of 31 March 2003, the ICI UK Pension Fund had a deficit for funding purposes of £443m and a solvency ratio of 93%. ICI has agreed to make top-up contributions to the Fund of £62m per year for nine years from 2004 and has provided an asset-backed guarantee, via a wholly owned subsidiary specifically incorporated to provide the guarantee, for £250m to support its commitments to the Fund. Such asset-backed guarantee is secured by way of a fixed and floating charge over the assets of the subsidiary. At 31 December 2004, over 84% of the Fund’s assets were invested in investment grade fixed-interest and index linked securities or cash. The balance of the Fund’s assets were invested mainly in equities. Accordingly, ICI is exposed to the financial performance of its retirement benefit schemes and particularly to the financial performance of the ICI UK Pension Fund. In certain circumstances, ICI may be required to increase its top-up contributions to the Fund. This could have an adverse impact on the Group’s results of operations and cash flow. ICI ANNUAL REPORT AND ACCOUNTS 2004
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