Prudential closes final salary pension scheme
Prudential has become the latest large company to close its final salary pension scheme to new employees, as the move away from this type of fund continues throughout the industry.
Link: FRS 17 special report
The company said that it was not making the move through any inherent financial weakness in its existing pension scheme, despite many other company pension funds being plunged into the red due to a poor equity market and the new FRS 17 accounting standards.
Prudential claimed the ‘defined contribution’ scheme that would be offered in its place would attract higher levels of employer contributions, offer greater benefits and provide greater flexibility for employees.
Amicus, the UK’s largest private sector union, slammed the move as ‘shameful’.