Chloride Group PLC - Statement re Press Comment

RNS No 6811f
CHLORIDE GROUP PLC
16th November 1998

CHLORIDE GROUP PLC


STATEMENT ON PENSIONS OMBUDSMAN'S DETERMINATION


Chloride Group PLC ("the Company") has noted press comment over the weekend
concerning the determination by the Pensions Ombudsman of complaints with
regard to the winding up of the Chloride (UK) Pension Scheme ("the Scheme") 
as at 1st September 1996. 

Commenting on the determination, David Wright, the Company Director with 
responsibility for pensions said:

"The key objective of the winding up was to ensure the long term security of
the benefits of the Scheme's members. This objective was achieved and 
additionally the arrangements made in 1996 gave members significant 
improvements over their previous entitlements. We are pleased that the 
Ombudsman has definitively dismissed the complaints made."

In order to achieve the long term security of the benefits of the members of
the Scheme, a substantial part of  the assets and obligations of the Scheme were
transferred to Legal and General, with the agreement of The Law Debenture
Trust Corporation plc, the independent trustee of the Scheme. 

Additionally, the benefits of approximately 5,300 pensioners and 1,500
deferred pensioners were improved by guaranteeing that future pensions 
increases would be fully in line with inflation. Benefits were further 
improved in connection with the definition of pensionable earnings and 
early retirement reduction factors. The cost of these improvements was 
approximately #20 million. A refund of the remaining surplus was made to the 
Company in February 1997 amounting  to #18 million and tax amounting to 
#12 million was paid to the Inland Revenue.

Four individuals subsequently made a complaint to the Pensions Ombudsman. In
his determination, no complaints against either the Company or the trustee
were upheld.

Enquiries:
Andrew Hayes, Hudson Sandler Limited
Tel: [phone]

END

MSCAILLTLFLRLAT