Former staff of Ernst & Young have hit out against the firm’s withdrawal of sponsorship of its money purchase pension plan.
Disgruntled pension scheme members complained changes to the plan would mean they would have to bear administration costs themselves.
Non-staff members of the plan now have the option of finding alternative arrangements for their pensions within six months or face having to pay substantial transaction charges.
The scheme was closed to new entrants in 1997 since when the funds have remained invested though no further contributions have been paid.
From the beginning of this year the firm has ceased to meet administration and investment charges, which will now be passed on to individual pension accounts.
The charges will have a particularly big impact on those members with relatively small fund values.
One former E&Y employee told Accountancy Age this week that the move would be ‘highly irritating’.
The trustee of the pension plan had considered winding up the whole scheme but decided this would not be in the interests of the membership as a whole.
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