News

In Issue 6 of The Link newsletter, we updated our members on the Scheme funding position, and on the mechanism to vary the cash contributions made by the Coats Group plc (“Coats”) to Coats UK Pension Scheme (“the Scheme”).

As outlined in The Link, Coats can switch off its monthly contributions to the Scheme if the Scheme reaches over 100% funding (on the technical provisions basis) and is in surplus.

The Trustee of the Scheme has reached agreement with Coats which will enable contributions to be switched off from 1 January 2024.

Coats has agreed to pay the Scheme a one-off lump sum payment of £10 million, which is expected to move it into a surplus position. This means that from 1 January 2024, cash contributions made by Coats to the Scheme will be switched off.

This puts the Scheme in a fully funded position, which is good news for all members, and helps Coats to free up cashflow to enable additional growth opportunities.

Coats will resume paying monthly contributions on a pre-agreed basis if the funding drops to below 99% on the technical provisions basis.

Issue 6 of the Coats UK Pension Scheme newsletter – The Link – is now available. In this issue: Scheme Report and Accounts, Pensioner Paydates, Pensions in the News, and much more. An Annual Funding Statement, showing the funding position of the Scheme as at 31 March 2023, is also available.

You can view these documents online in the members-only section of this website (you will need the secure area password): click here.

The link to the Annual Funding Statement is in the Factsheets area of this section.

P60s for the year ended 5 April 2023 have been issued to members in receipt of a pension. Any queries regarding tax (such as your tax code or the tax deducted from your pension) should be directed to HM Revenue and Customs Tax Office; they can be contacted on: 0300 200 3300. Please quote your National Insurance number.

Issue 5 of the Coats UK Pension Scheme newsletter – The Link – is now available. In this issue: Scheme Report and Accounts, Pensioners Payments, Protecting Your Pension and much more. An Annual Funding Statement, showing the funding position of the Scheme as at 31 March 2022, is also available.

You can view these documents online in the members-only section of this website (you will need the secure area password): click here.

The link to the Annual Funding Statement is in the Factsheets area of this section.

The Trustee of the Coats UK Pension Scheme is committed to ensuring the long-term security of the Scheme. Whilst the Scheme is well funded and has the continued financial support of Coats, the Trustee and the Company have together been investigating ways to reduce the remaining risks associated with the Scheme.

Following an extensive due diligence process over the past year and on receipt of advice from its specialist advisers, the Trustee, with the support of the Company, has purchased a bulk annuity insurance policy with Aviva to be held as an investment of the Scheme. This policy (also called a “buy-in”) provides income to the Scheme, covering a significant proportion of the Scheme’s pensions already in payment.

This decision by the Trustee does not change members’ pension entitlement (or the value of the benefits that would become payable on death). Entitlements under the Scheme remain as they were before. Members who are receiving a pension already will carry on receiving the same payments in the same way and on the same date.

The Trustee has worked closely with the Company throughout this process and the Company is fully supportive of this decision. There is no change to the relationship between the Company and the Scheme.

A letter is being sent to all CUKPS members giving more information about the insurance policy and Aviva. We ask all our members to look out for this letter. No further action is required.