Pension provider to close own pension scheme

Pension provider Friends Provident looks set to close its final salary
pension scheme to new employees next year following a three-yearly review of its

The scheme is one of the few well-funded final salary schemes with a deficit
of £16m under FRS17 accounting rules, according to The Times.

From October, the FTSE100 insurer said it will also change its retirement age
from 60 to 65. But as a result, employees will have to choose between either
higher contributions if they retire at 60 or lower ones if they wish to leave at

Keith Satchell, group chief executive, said: ‘We have been working closely
with Amicus and the pension scheme trustees for some months, and are now
entering a new phase of consultation with employees about the changes planned
for mid-2007.
‘Our proposals demonstrate our ongoing commitment to the security of the current
pension fund and to providing high-quality pensions to our employees, both
current and future.’

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