Discretionary Means Discretionary Says Heineken

20 February 2012 (PLANSPONSOREurope.com) - Heineken has told PLANSPONSOR Europe that discretionary means discretionary with regards to pensions in its dispute with Scottish & Newcastle pensioners following the beer company’s takeover of the firm.

According to the Daily Telegraph, Heineken has ended talks with Scottish & Newcastle pensioners. It reports that Heineken CEO Jean-Francois van Boxmeer, said the company has done its "fair share" for Scottish & Newcastle pensioners despite claims that it reneged on a promise made at the time of Heineken’s acquisition of Scottish & Newcastle to peg annual pension increases to inflation.

The pensioners have asked the House of Commons' Business Innovation and Skills select committee to review their case this Spring as part of a wider inquiry into the takeover of British companies by foreign firms.

The paper adds Van Boxmeer has agreed to give evidence if called by the committee.

A Heineken spokesperson told PLANSPONSOR Europe: “There is no new announcement. The crux of our argument is very simple. For those pensions affected with a discretionary element, discretionary means discretionary. At the appropriate time and for us that’s annually in the autumn, we review those pensions in line the health of the funds. We did that in September last year and we felt that a 2.5% increase was appropriate at the time for those pensions with a discretionary element.

“That will continue to be our approach. We are resolute in that – the law states that these are discretionary elements and we will evaluate them annually based on the circumstances at the time.”
 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com