H&L to Cease Participation in GK's DB Pension Plan

Hardware and Lumber Limited (HL) has advised of plans to cease participation in the GraceKennedy Defined Benefits (DB) pension plan, offering in its place enrolment in the GraceKennedy Defined Contribution (DC) pension plan. "This is another in a series of steps to move H&L to greater independence and in time we expect HL to have its own DC pension plan, but we need time to go through the regulatory and other processes before we can achieve that" said HL CEO, Andrea Coy. In making its decision, the HL Board was also guided by the fact that pursuant to changes in the accounting standards effective in 2013, HL had taken onto its balance sheet a significant pension liability which will be removed on the company`s exit from the DB pension plan. The entire process for withdrawal from the DB pension plan is expected to be completed by the beginning of next year.