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Professional Pensions | 06 Feb 2012 | 10:26
Categories: Defined Benefit
Topics: Cpi, Scheme closures, Deficits
IT firm RM has begun a consultation to close its defined benefit scheme to existing members in a bid to limit its exposure to the schemes growing liabilities.
In its preliminary results for the fourteen months to last November, the firm said it had entered into discussions with trustees after conducting a review with its pension advisers.
The results revealed the scheme, which was closed to new entrants in 2003, had a pre-tax IAS19 deficit of £21.2m - up from £12.4m at the start of the period.
This was despite the scheme shaving £4.7m off the deficit by switching to Consumer Prices Index-linking for deferred members.
The group said it had previously agreed a recovery plan which would see it contribute £1.7m a year to eliminate the deficit by 2017 following the last triennial valuation which found an actuarial deficit of £16.6m as at May 2009.
The company added that it had taken a number of steps to mitigate its exposure to the pension liabilities since closing the scheme to new joiners, including increasing member contributions and introducing pensionable salary caps.
Categories: Defined Benefit
Topics: Cpi, Scheme closures, Deficits
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