The pension fund, which KPMG maintains is a money purchase scheme, is understood to have a deficit of £60m to 65m. KPMG says the figure is still ‘unconfirmed’.
The letter from the trustees says: ‘It is most probable that the trustee will have to reduce benefits to maintain the solvency of the scheme.’
KPMG said the decision about benefits would not be made until the courts resolved the status of the scheme. With some employees claiming the scheme is really final salary, KPMG has sought a court ruling defining the scheme as money purchase.
KPMG said a ruling is not expected until next year.
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