UK - Practical steps companies can take to avoid strike action if they need to reduce pension benefits have been set out by the NAPF.
But it has welcomed growing trade union interest in pensions as a sign employees are becoming more aware of the benefit.
The NAPF says companies looking to cut pension costs should consider:
- Changing a final salary scheme’s accrual rate for future benefits- Modifying sickness benefits- Negotiating increases in employee contributions- Switching the scheme from final salary to career average
NAPF chief executive Christine Farnish said: “There are a number of sensible, practical steps – open to negotiation by both sides – which can ease the burden on employers, but still retain valuable pension benefits for workers.
“Any changes made would not affect the entitlements already built up by workers in a final salary pension.”
She added: “Growing trade union interest in pensions is a welcome sign that employees are becoming more aware of just how valuable a company pension is. Employers who ignore this do so at their peril.
“But employers who offer these schemes are undoubtedly facing growing cost pressures, and if a firm goes bust in the attempt to retain a final salary pension scheme, everyone loses out.”
Hyperbolic discounting and political temptation: Why Brexit-fuelled AE reversal would be a 'monumental' mistake
The home secretary has suggested AE should be scrapped in the event of a no-deal Brexit. Darren Philp explains why this would be misguided
The trustees of the Kodak Pension Plan No.2 (KPP2) have said it will likely enter the Pension Protection Fund (PPF) in "due course" after reviewing the scheme's investment in Kodak Alaris.
A US company has completed a £285m pensioner bulk annuity for around 1,100 of UK members with Legal & General (L&G).
Former BHS chief Dominic Chappell has been accused of trying to rewrite history as he seeks to overturn a conviction for failing to hand over information to the regulator.