The Netherlands: Developments at SMIT Pension Fund
Further to earlier reports concerning the financial position of the SMIT pension fund, Boskalis announces that the board of the SMIT Pension fund Foundation (Stichting Pensioenfonds SMIT) has informed the Board of Directors of SMIT that it intends to reduce the pension entitlements by 13.2% from 1 January 2011 in order to strengthen the fund’s financial position.
The board of Stichting Pensioenfonds SMIT is currently conducting an investigation, with the aid of external legal advisors, into the past state of affairs at the fund and in particular into whether there may be grounds for mandatory additional contributions.
The Board of SMIT has to date not been informed that the ongoing investigation has resulted in any change of view with regard to the absence of a legal obligation to make additional contributions.
During the due diligence carried out in connection with the merger with SMIT, Boskalis took note of the pension fund’s tight financial position. The underfunding of the fund was also discussed in detail during the final negotiations with the Executive Board and Supervisory Board of SMIT. Both maintained, partly on the strength of thorough internal investigations, that no legal obligation to make additional contributions existed. Furthermore, there was no intention on the part of SMIT to move towards a voluntary contribution.
As already previously announced, any additional contribution by SMIT to the company’s pension fund would have no material effect on the results and financial position of Boskalis.
Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. We provide creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. We offer a wide variety of marine services through SMIT and we have positions in strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). The company holds important home market positions in and outside of Europe. Boskalis has a versatile fleet of over 1,000 units and operates in over 65 countries across six continents. Including its share in partnerships, Boskalis has approximately 14,000 employees. Boskalis celebrates its 100th anniversary in 2010.