Governmental banknote printer De La Rue is to close its final salary pension scheme to future accrual and instead offer employees access to a defined contribution scheme.
The final salary scheme will be closed to future accrual for all employees from 1 April 2013 but pension benefits up until this date will be protected. The move, following a consultation with staff, will reduce the scheme’s £124.8 million deficit by £20 million.
An evaluation of the firm’s scheme showed the deficit increased from £67.5million in March 2009 to £124.8 million. The company said the increase was primarily caused by a reduction in the bond discount rate used to value scheme liabilities.
The new DC scheme will be created from this summer.
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