Insurance broker Jardine Lloyd Thompson (JLT) is proposing to close its final salary scheme in a bid to reduce its £146m pension deficit.
JLT said members of the defined benefit scheme would be offered a new defined contribution scheme. The changes are expected to affect 40% of the company’s UK staff, representing about 20% of the group’s overall workforce.
The company also said it would be making an initial cash contribution of £35m to the defined benefit scheme and additional contributions totalling £30m by 2009.
Dominic Burke, group chief executive, said: “The proposed changes outlined are designed to reduce the group’s UK pension scheme deficit, provide additional security and certainty to pension scheme members and ensure that JLT continues to provide its employees with highly competitive pension arrangements.”
Yesterday retailer Debenhams said it was planning to close its final salary scheme to existing members by moving to a stakeholder scheme.