UK - Aegon is to close its final salary scheme to new members from April 1 due to falling markets and rising liabilities.
Members of the non–contributory £311m Aegon UK Staff Retirement and Death Benefit Scheme have also been told they must start making contributions of 1.25% – to rise to 5% by 2005 – to keep their 1/60th benefits.
Without member contributions they will receive 1/80th benefits.
Members who do not wish to start making contributions will also be given the option of joining a money purchase scheme, which will be open for new employees in April.
Aegon group public affairs manager Scott White said: “It is still very much a considerable and valuable staff benefit but the economics of today mean that, in terms of funding, lower returns and increasing longevity, it all adds up to a very challenging time for final salary schemes.
“What we are offering members is still very much the Rolls Royce of pension arrangements.
“But Rolls Royce’s use up a lot of petrol, so we are looking for member contributions to go towards that petrol.”
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.