UK - A growing deficit in the FSA's £153m final salary scheme could result in pay freezes at the government watchdog.
The FSA’s plan and budget for the 2002-03 financial year said that, following consultation with staff, it will not be making any changes to the scheme.
But it added that to plug the scheme’s deficit it would have to top up its contributions over the next 10 years. These extra contributions – an additional £2.5m will be put in this year – may lead to a pay freeze for staff.
The FSA scheme – which was closed to new members in 1998 – had a £31m deficit under FRS17 last March.
*The FSA is to spend an extra £6m regulating the UK’s financial markets next year, bringing its budget up to £200.5m.
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