The National Society for the Prevention of Cruelty to Children (NSPCC) is to close its final salary pension scheme to existing members.
The move comes in order to mitigate the pension liabilities and the level of financial risk it presented the organisation. The charity said it could not afford to let these liabilities grow further without risking an impact on its services and the work it carries out to help vulnerable children.
NSPCC’s director of finance Ian Chivers said: “We understand this will have a significant impact on many of our staff and within the constraints of affordability are putting transition arrangements in place to ease the impact on staff nearing retirement and to help all affected staff move to our stakeholder pension scheme.
“This was a very difficult decision but we are not alone in going down this route in these difficult financial times. Many large corporations have also found it too much of a burden to continue with final salary pension schemes.”
The union Community said that by closing its final salary scheme, the NSPCC will, in effect,be offering staff less favourable terms and conditions of employment, due to many currently receiving the contractual benefit of the non-contributory scheme. It added: “When the scheme is officially closed in December 2009, we will be contacting members to advise them on their legal and contractual rights.”