Cadbury consults over closure of final salary pension plan to new staff

Cadbury’s defined benefit (DB) scheme will be closed to new employees and a new defined contribution (DC) scheme will be offered instead if proposals from Kraft Foods are accepted.

A 90-day consultation period over the proposal, slated to end on 19 March, is currently in progress.

A spokesperson from Cadbury said it is difficult to comment on the figures and details of the proposal, which includes a suggested increase in employee pension contributions, while the consultation is underway. However, he did say that, if accepted, the changes will be phased in gradually over a period of time.

A joint letter to more than 28,000 Cadbury UK pension fund members from Kraft and the pension scheme trustees stated: “Kraft Foods would like to take this opportunity to reassure you that the decision by the shareholders to accept Kraft’s offer has not undermined the security of your pension and that the trustees and Kraft are focused on protecting the pensions of all members.”

Kraft purchased Cadbury less than a month ago in a controversial £11.7 billion takeover.

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