Engineering design software provider Delcam says that it is closing its defined pension scheme to future accrual.
New entrants have not been allowed into the scheme since 2003 but existing members were still accruing their original benefits. This will end at the end of 2010. This affects around 100 people.
The cost of the pension provision is increasing and it would have become a huge burden to continue with the final salary scheme.
The pension deficit will still be around £4.4m. A single payment of £2.5m will be made into the scheme on 4 January. An annual payment of £500,000 will be made in order to eliminate the deficit by 2016
At 302.5p a share, Delcam is valued at £23.3m.
In November, Delcam announced a proposed €250,000 investment in Marcam Engineering, which provides additive manufacturing software. Delcam will take a 24.9% stake.
Download the December edition of AIM Journal at http://www.hubinvest.com/AIMPDFDecember2010_15.pdf
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.