KPMG partners face £88m pensions bill
Partners to pay out of their own pockets to close pension hole
Following a ruling by the Law Lords, partners at KPMG will have to come up
with £88m of their own money to fill a hole in the firm’s final salary scheme.
KPMG was denied leave to appeal the ruling which came about after former
staff brought the action against the Big Four firm to protect pension payout in
the face of moves to change a money purchase scheme and impose severe benefit
cuts, Pensions World reported.
This would mean that each of KPMG’s 560 partners would have to pay in excess
of £156,000 each, if the bill was split evenly, to make up the shortfall.
On average, partners at KPMG earn annual salaries of £550,000.
KPMG will now agree a plan with the trustees to ensure adequate scheme
funding.