UK - Jardine Lloyd Thompson is reducing benefits for members of its final salary pension scheme after reporting a £157m FRS17 deficit.
The employee benefits consultant said it would make “certain changes” to accrued benefits for existing members in respect of future service to combat the “impact” of longer life expectancy and lower returns.
But a spokeswoman said the reductions would not be finalised until scheme members had been consulted. She said: “We feel we should be talking about this to our staff first – and that is what we are doing.”
JLT is to contribute a one-off £50m lump sum into the scheme by the end of the first quarter to help plug the shortfall.
Chief executive Steve McGill said: “This will have a significant and immediate impact in reducing the existing deficit.
“Our staff remain our most important asset and this response underlines our commitment to them. We also consider that this strikes an appropriate balance between the interests of scheme members, the group and its shareholders.”
The scheme – which was closed to new members at the end of last year when JLT switched to DC provision – has 1400 active members in the UK.
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