15 July 2010 #Employment
According to the Pension Protection Fund (PPF) the collective deficit of UK final-salary pension schemes widened in June.
Not surprising given the extremely challenging times we are in. The downward trend is nothing new either and over the last decade we have seen scores of FTSE 100 employers closing their final salary schemes, initially to new recruits, and more lately for existing members.
Aviva, the life insurer formerly known as Norwich Union, earlier this year proposed switching to a defined contributions scheme, potentially impacting the retirement plans of about 7,600 of its employees.
In the past year Barclays, Vodafone, IBM, BMI, Morrisons and Fujitsu all announced similar plans. And more are expected to follow.
Clarkslegal LLP has particular expertise in advising Companies on the employment aspects of closing final salary pension schemes. Contact us through employment buddy for further information.