UK - Micro-electronics firm Zetex has been forced to rethink plans to increase staff contributions to its final salary scheme following angry responses from workers.
Zetex’s 500 staff were told contributions would have to increase from 5% to 8.5% if they wanted to retain a 1/60th accrual rate.
Maintaining contributions at 5% would give them a 1/80th accrual while increasing payments to 6.5% would give them a 1/70th benefit.
But employer contributions were to remain unchanged.
Amicus AEEU convener John McNamara, who works as a line support fitter at Zetex, said: “The deal stinks.
“All of a sudden it is a big increase. People weren’t aware of this big problem.”
Workers’ anger has prompted parent company Telemetrix to consider a new offer that will see Zetex share the burden to ease the scheme’s £14m deficit.
In March, workers at Peugeot ended a long-standing dispute with the car firm over pension contributions, when management agreed to phase in the increases gradually.
Peugeot agreed to stagger the one percentage point increase, which will take employee contributions from 4% to 5%.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers