UK - Unions have attacked a decision by construction supply firm Travis Perkins to close its final scheme to all new employees except management.
The move was unveiled in the company’s 2002 results which also revealed an FRS17 deficit of £85.8m.
A TUC spokesman said: “For an employer to ignore the divisiveness caused by unfairly shutting a scheme to staff in lower grades beggars belief.”
He added: “We have been warning employers that the long-term costs of closing good schemes to new staff far outweigh any short-term gains.”
The company’s financial results said: “As with many other pension schemes, the sustained falls in stock markets over the past year, combined with falling bond rates and greater longevity of pension scheme members, have contributed to a further deterioration in the overall funding position of the Travis Perkins pension scheme.”
The company has set up a defined contributions pension plan, which new employees will be invited to join.
The company said: “It is anticipated that ongoing company contributions will be at a similar proportion of pensionable salaries to the defined benefit scheme.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.