UK - Tractor giant Agco spent £8m on legal fees to win its pensions battle with workers made compulsorily redundant.
But the ruling – which allows Agco to cut pensions for former workers if they decide to take their benefits early – will save the US-based firm about £40m.
The appeal overturned an earlier High Court ruling that staff at a former Massey Ferguson plant – which closed after being taken over by Agco – could take their pensions early without penalty, because they were being made compulsorily redundant.
The Appeal Court ruled that the £260m final salary Agco Massey Ferguson Pension Scheme can penalise the pensions of staff who are being made redundant, by a reduction of 6% a year, if they draw their pensions earlier than the firm’s official retirement age of 65.
The 1000 staff are all employed at Massey Ferguson’s Coventry Plant, owned by international tractor giant Agco, which is due to close in early August.
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