UK - Members of the KPMG Staff Pension Scheme are to take legal action to prevent trustees and employers switching their entire funds' assets into gilts.
The planned move – affecting only members of the pre-April 2000 fund – will lock in a deficit of 20% and lead to cuts in the amount of pension each member is entitled to.
Former employees of KPMG and members of the pre-April 2000 fund have written to the press in bid to make contact with other members and then mount a class action against KPMG and Capita Trustees Services’ proposals.
Members are also seeking to make a legal claim against KPMG on the grounds that they had been led to believe that the pre-April 2000 fund was a defined benefit scheme. A dispute over the actual scheme type still remains.
Norton Rose partner Lesley Browning warned that in previous legal battles over members’ pension rights, scheme members have lost out despite being given incorrect information.
Browning added that the pre-April 2000 fund was operating like a with-profits arrangement.
She added: “It looks to me that the members have not got much of a claim, unless they have had some sort of communication from the company which implies that the notional amount of pension cannot be cut back.”
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