The background for the dispute was that EDB Business Partner ASA decided on 13 July 2009 to terminate the company's closed defined benefit pension scheme in Norway with effect from 1 September 2009. All members of the closed defined benefit pension scheme were transferred at this date to EDB's defined contribution pension scheme. The termination of the defined benefit pension scheme caused a non-recurring accounting effect of NOK 568 million in the third quarter of 2009, with announced annual cost savings of NOK 70 million. A group of employees have given notice of their intention to issue legal proceedings in the Oslo District Court to challenge the company's right to make changes to the defined benefit scheme unilaterally.

Under the terms of the settlement, the compensation scheme established in 2009 upon the termination of the defined benefit scheme will continue unchanged, however, contrary to the current agreement, the company will no longer be entitled to change unilaterally the terms of this arrangement irrespective of reason. In addition, the company has agreed to pay new cash compensation with effect from 1 January 2011 to affected employees who are employed by the company as of today's date for as long as they remain in the company's employment.

The annual effect on EBITA and cash flow for EDB ErgoGroup will be in the order of NOK 9 million, and the discounted present value is estimated to be NOK 67 million. The settlement will have no impact on the company's balance sheet.

"I made it clear in connection with the merger that one of the main tasks was to take care of our customers and employees. The pension case has been demanding. I wanted to take a fresh look at the case, together with the employee representatives, to see if it was possible to find a solution without legal proceedings. I have put great emphasis on finding a solution that takes into account the interests of both the employees and the company", comments Terje Mj&ooslash;s, CEO of EDB ErgoGroup.