UK - The state-funded Race Equality Council's final salary scheme is facing the axe.
The scheme is paid for by the Home Office and administered by the Commission for Racial Equality. But the CRE said the pension was “badly drafted” and needed change.
The scheme was closed to new members in 1999 due to rising costs – the CRE’s employer contribution has risen to nearly 60% of salary for pre-1999 members.
Post-1999 employees receive a scaled-back version of the final salary scheme, with an employer contribution of 29%.
The possible scrapping of the scheme has prompted fears that it will be replaced with a money purchase scheme that will not offer as much security.
A CRE spokeswoman said: “When, in 1999, it became evident the scheme was becoming a drain on the CRE’s budget we stopped new members joining.
“But because of the peculiarity of the scheme, it has taken this long to make progress in resolving the situation.”
She said the pension was not a “typical public sector pension scheme” and was completely separate from the Civil Service Pension Scheme.
The CRE and the Home Office are consulting on a replacement.
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