UK - Mail-order giant Otto UK is merging the pension schemes of two of its catalogue publishing arms - Grattan and Freemans.
The Freemans Retirement Scheme and Grattan Staff Pension Scheme will form the new £230m Otto UK Pension Scheme, which will include a new defined contribution section for new entrants.
The two final salary schemes will close to new entrants with the new DC provision open from October.
Freemans pensions manager George Jolly said the merger would allow them to cut scheme and administration costs. Jolly said: “We just can’t afford to keep the final salary schemes open any more.
“There will be no difference from a member’s point of view, it was simply a cost-cutting exercise devised by our actuaries and solicitors.”
Grattan pensions manager Ian Andrews said: “The schemes are in common ownership but each had separate administration. This will see them both managed from the new head office in Bradford, which makes a lot more sense.”
The new scheme will have about 7000 active, 3000 pensioner and more than 5000 deferred members.
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