House of Fraser axes pension scheme

It is understood that finance director David Adams has also not ruled out closing the scheme to its 3,000 existing members.

Speaking in the national press Adams said: ‘It is too early to say. We will not be making decisions until we get the report from Bacon & Woodrow, our actuaries.’

The review is not expected to be completed before the summer.

Under the new pensions standard FRS 17 the group revealed a year-end net deficit of £41.4m.

Ernst & Young recently closed its final salary scheme to existing members, while Whitbread, ICI, Lloyds TSB, Sainsbury’s and BT have all axed their final salary schemes in favour of less costly schemes due to a volatile stock market, earlier retirement and longevity.

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