Phoenix Group closes two defined benefit pension schemes to future accrual

Phoenix Group has closed two of its defined benefit (DB) pension schemes to future accrual.

Trustees of the two pension schemes agreed to the closure, which will bring a curtailment gain of £10 million relating to a release from future liabilities.

Members of the two schemes are staff from the firm’s Pearl Assurance and Pearl divisions. The Pearl scheme had a £77 million deficit at December 2010, while the PGL scheme was £59 million in surplus.

The schemes have approximately 33,000 members of which 350 are active. Active members will now move to defined contribution (DC) arrangements.

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