Vodafone plans to close final salary pension to all staff

Vodafone has announced plans to close its final salary pension to future accrual.

The mobile telecommunications giant informed around 4,000 active members of the defined benefit (DB) scheme in a letter earlier this week.

A spokesman for Vodafone said the scheme’s liabilities have become unsustainable. Company accounts showed the scheme had a shortfall of £60million with liabilities of £815m.

The affected employees will be transferred to a defined contribution scheme, which already currently has 6,000 members. The firm closed the DB plan to new members in 2005.

Consultations with staff will be ongoing, with the proposed changes likely to occur in April next year.

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