UK - Companies are walking into a "legal and industrial relations minefield" when they close their final salary schemes to new members, a leading lawyer warns.
Hammond Suddards Edge partner Ian Greenstreet said firms should consult with employees and explore all available alternatives before stopping future benefit accrual.
Greenstreet – speaking at a Confederation of British Industry conference on pensions – urged firms to think through the legal ramifications.
He said: “Failure to consider these issues may result in employers walking into a legal and industrial relations minefield.
“Wind-ups can take years, result in litigation and give rise to significant uncertainty about employees’ benefit entitlement. In some cases termination of final salary accrual may result in strike action.”
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