UK - Yell, the business directories company, has closed its defined benefit scheme to new members.
The move comes a year after Yell was bought out from BT by venture capitalists Apax Partners and Hicks, Muse, Tate & Furst for £2.1bn.
Yell is seeking a stock market listing and its flotation prospectus revealed that its DB scheme, which has 3300 members, is around 1% underfunded.
Yell will now offer a money purchase scheme for which it will make contributions of 4% for each employee. These will rise to 6% after five years’ service, 8% after 10 years’ service and are then capped at 10% after 15 years’ service.
It had previously made contributions of 12% to the DB scheme. Yell this week temporarily withdrew plans for an initial public offering because of “market volatility”.
The decision to delay the float came days before Yell was due to price its shares, which was expected to value the company between £1.8bn to £2.3bn.
The Co-operative Group's Somerfield Pension Scheme has completed a buy-in with Pension Insurance Corporation (PIC), insuring the benefits of its pensioner members.
Caroline Rookes CBE and Michele Hirons-Wood have joined The Pension Superfund's board of trustees to focus on maintaining governance standards and safeguarding member benefits.
The first specialist independent firm advising pension schemes on bulk annuities or moving to a consolidator has been set up with ambitions to shake up the market.