UK - Unions are seeking urgent talks with trustees amid fears that Grampian Foods is planning to wind up its final salary pension plans.
The £27.8m Grampian Food Group Pension and Life Assurance Scheme consists of three final salary sections, which are closed to new members, and three defined contribution schemes.
The three defined benefit schemes have a total of 1090 active, 162 deferred and 218 pensioner members.
But the Hertfordshire-based company is reviewing the final salary sections to determine whether in its circumstances it should continue to run them.
The review will be completed next month.
Scheme administrator Brian Wilkins said: “The company and trustees are still in discussions but nothing has been decided. Two of our schemes have already undergone evaluation and this is something that is happening all over the place.”
Union officials are seeking talks with the trustees but fear a decision to close the schemes has already been made.
Amicus official Adrian Axtell said: “The company has paid lip service to the fears of our members and is clearly aiming to close the schemes.
“Amicus has sought urgent talks with Grampian but we believe the decision has already been made by the company.”
Grampian currently pays 7% into its DB schemes and 5% into its DC offerings in a figure that is matched by employees.
Axtell added: “The difference is small but the consequences are huge. As part of a closure they would have to fully fund it anyway, which could be potentially costly. It doesn’t make sense to close good schemes that are a good part of employee terms and conditions.”
The FCA and TPR have announced their joint strategy for tackling the key risks facing pensions in the next decade. Victoria Ticha explores the plan and the industry's initial reaction.
GKN has slammed Melrose for making 'misleading' comments relating to the engineering giant's two UK defined benefit (DB) schemes.
UK inflation fell to 2.7% in February 2018 from 3% a month earlier, the Office for National Statistics (ONS) has confirmed, a larger decline than analysts expected.
In the latest in a monthly series of DC columns from Newton Investment Management, Curt Custard warns investors of the possibility of further volatility in the months ahead