Logica to close final salary pension scheme

Logica has become the latest UK employer to close its final salary pension scheme.

The computing group said that it planned to close the defined benefit scheme to new employees from the second quarter of next year.

Up to 470 of the firm’s longest-serving employees will be affected and, instead, given the chance to join an inferior defined contribution scheme, the Times reported.

An existing defined contribution scheme for another 3,200 Logica employees in the UK will also be closed. Members of that scheme will be offered the opportunity to join the new scheme.

Dennis Bell, manager for UK remuneration and benefits, said that the old final salary scheme had made it harder to price contracts because the accounting cost of providing the benefits was so volatile. The new system would give Logica more certainty.

The UK defined benefit scheme, with £178m of assets, was £14.9m in deficit at the end of 2008.

Last week, it emerged that Vodafone is planning to close its £755m final salary pension scheme to about 4,000 of its employees.

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