Topaz's takeover of Statoil's Irish operation has ruffled the feathers of Statoil Ireland's pensioners, who are demanding assurances on their future entitlements.
Joe O'Keefe, acting chairman for the Statoil Pensioners' Association, said yesterday the Norwegian company had not explained the full repercussions of the takeover for its pensioners. As part of the takeover deal, Statoil's defined benefit scheme will be transferred to Topaz. However both companies have agreed that the benefits available to pensioners will be no less favourable than those currently enjoyed, for at least three years from the date of completion of the sale, with CPI increases guaranteed during this period.
"We don't know what will happen after that; [ benefits] could be frozen. We don't know Topaz," said Mr O'Keefe. Pensioners want Statoil to remain responsible for the pension fund, he said.
A spokesperson for Statoil said yesterday that the company had agreed the "best possible arrangement" for its employees and pensioners.
"A significant capital contribution will be made to the Statoil Ireland Limited Pension Scheme on completion of the transaction in order to eliminate the deficit as at 1st January 2006," the spokesperson said. It is believed that this contribution will be in the region of €8 million.
He said that the arrangements in place for the company's pensioners go "beyond what Statoil ASA is required to do from a legal perspective and shows their commitment to the employees and pensioners in negotiating this deal."
He added that Statoil's normal practice when selling businesses is to dispose of the entire business, which in this case includes ceasing to have any involvement in the Statoil Ireland pension scheme.
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