KPMG pension fund members face 20% shortfall
Members of a KPMG pension fund face seeing their benefits cut by up to 20% because of a multimillion pound hole in the scheme which the firm has so far refused to help plug.
Actuarial estimates put the shortfall in the pre-April 2000 fund at around £60m but KPMG has so far told trustees it will not provide additional sums.
In a letter to scheme members, the fund’s trustees reveal they have discussed more funding with KPMG for the £300m fund but ‘it is not considering making any discretionary payments’.
One fund member told Accountancy Age: ‘This seems tough on the ordinary workers at KPMG. If this was a partners’ scheme they would be topping it up.’
Trustees say they are considering an ‘application to the court’ to settle the issue but it remains unclear whether this will be an effort to compel KPMG to pay more or whether it will be a joint submission asking for clarification.
KPMG believes it is not in conflict with the trustees, Capita Trustee Services, and that a court measure is most likely to be a joint submission asking for advice about paying a ‘negative bonus’.
Ian Robinson, partner in charge of human resources, said: ‘The trustee wants some guidance on how he applies a negative bonus’.
He said KPMG faced no legal liability to add more money to the fund and the firm had not received further contact from the trustee. The trustee refused to comment.