ICAEW to axe final salary pension scheme
Final salary scheme to shut for existing members next year
The UK’s largest accountancy body has announced they are to cancel their
final salary scheme.
Although the scheme has been closed to new members since 2000, current
ICAEW
employees who joined the scheme before then may also have to move in to the
defined contribution scheme as of 31 May 2010. The scheme has a £19m funding
deficit.
Other employers have been forced to save money pare down the pension
offerings due to tough economic conditions and growing scheme deficits.
A spokesperson for the ICAEW said that the fund had become too costly in its
current form and that the volatility of the market made it difficult to
determine the amount of funding needed.
He said: “We will honour the commitments we have already made to those people
in the scheme, and are committed to funding the deficit that exists.”
Further reading:
Accounting rules mask £75bn
pension deficit
IBM workers up in arms about
pension cuts