3 May 2007
Stoke-on-Trent, UK - Michelin is to change the pension arrangements for its UK workers. The company said its pension liabilities have grown to £260 million (€380 million) in 2006 from £57 million (€84 million) in 2002 , despite a cash injection totalling over £100 million by the Company.
The company has therefore begun a consultation with employees with the aim of ending defined-benefit pension arrangements and converting benefits to a money-purchase scheme.
In the company's initial proposals, employees would no longer build up rights to a pension based on final salary after 1 Jan, 2009, but any benefits earned up to that time would be retained, and would be paid out based on the final salary of the employee upon retirement.
Future benefits would be earned according to money-purchase rules, said Michelin.
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