Topaz to wind down pension scheme

IRISH-OWNED FUELS group Topaz Energy has decided to wind down a defined benefit pension scheme that is €26.9 million in deficit, The Irish Timeshas learned.

The move affects about 250 current and former workers, who were informed of the decision in recent days. It is understood that 38 people still work for Topaz.

It is believed current employees will be offered the opportunity by Topaz to transfer into a defined contribution pension scheme. The pension fund that is being closed dates back to Statoil’s ownership of the business, before it was acquired by Topaz.

Topaz, which has annual revenues of more than €3 billion and is Ireland’s biggest fuel provider, has engaged PricewaterhouseCoopers (PwC) to advise members on their options as the scheme winds down. A dedicated telephone help-line has been set up by PwC to handle calls from members.

It is understood that some members will be briefed about the plan at meetings in the Berkeley Court D4 hotel in Ballsbridge today.

A spokesman for Topaz said the plan had been agreed with the pension scheme trustees.

The spokesman added: “As part of the wind-up, the company will make an investment into the scheme which will ensure that pensioners will continue to receive their current pension payments, and former and current employees will be able to transfer their funds from the scheme to an alternative Topaz pension scheme.”

He said the investment into the scheme and its wind-up was the “best way of protecting the interests of the scheme’s members, including pensioners”.

Latest published accounts for Topaz show that it made an operating loss of €500,000 in the year to the end of March 2009. Large interest payments made on loans that were used to buy the business meant the fuel group closed that year with an after-tax loss of €18.9 million.

But Topaz is believed to have returned to the black in the financial year just passed, recording an operating profit of more than €20 million for the 12 months to the end of March 2010. These accounts have yet to be released.

Topaz was formed in the past five years through the acquisition of the Shell and Statoil forecourt and distribution businesses. The Shell and Statoil brands were removed from petrol stations around Ireland last year and replaced with the Topaz name.

The acquisitions were put together by Dublin-based Ion Equity, which is led by Neil O’Leary, with entrepreneurs Denis O’Brien and Gerry Barrett providing financial backing.