Important Announcement: Proposed Pension Scheme Consolidation

Transfer of pension benefits in the Coats Pension Plan to a new Scheme.

Coats Ltd (“the Company”) is the sponsoring employer of Coats Pension Plan (“the Plan”). The Company is also the sponsoring employer of two other pension schemes in the UK – Brunel Holdings Pensions Scheme and Staveley Industries Retirement Benefits Scheme.

The Company has asked the Trustee of the Plan (“the Trustee”) to agree to the transfer of all benefits under the existing Plan into a new pension scheme called the Coats UK Pension Scheme (“the new Coats Scheme”).

The new Coats Scheme would be a consolidation (or merger) of all three of the UK pension arrangements into a single scheme.

It is proposed that Plan members’ pension benefits will be provided by a new scheme called the Coats UK Pension Scheme. This is planned to take effect on 1 July 2018.

This proposal does not change the level of pension entitlement members currently have in the Plan. Plan Members should receive a letter from the Company and Trustee Board with more information about this.

Please note: the Pensions team is likely to be very busy preparing to implement the system and data changes associated with this transfer, so there may be a delay to their normal timescales. Please bear with them during this exceptionally busy time, and please be assured that they will respond to all queries as quickly as possible.