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.”
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