UK - Trade unionists have praised car giant Ford for improving its "top class" final salary scheme.
The car giant reaffirmed its commitment to its £1.7bn final salary pension scheme after unions agreed to increased employee contributions.
The scheme needs increased contributions to cover a deficit, the full size of which is currently being determined by an actuarial evaluation.
Ford said that from April, the 11,500 members of the scheme’s hourly paid contributory pension fund will increase their contributions from 5% to 6%.
Ford will raise its contributions at the same time – the rate will be determined by its actuarial review.
Unions have also welcomed the firm’s decision to remove the lower earnings limit when calculating pensionable pay.
Human resources director Maria Antoniou said: “I am especially pleased we have been able to reach an agreement that maintains Ford’s industry-leading final pay pension scheme.”
The Transport and General Workers’ Union said: “Bucking the trend of companies opting out of final salary pension schemes, Ford have made major improvements to an already top-class scheme.”
The union’s chief negotiator for the car industry Tony Woodley added: “It demonstrates that the good employers will look after their employees when in work and when they leave, by securing a retirement that does not lead to poverty.”
Ford’s deal echoes a similar plan at Peugeot which want its hourly paid employees to increase pension contributions from 4% to 5%.
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