Rolls-Royce considers closing final salary pension scheme

Rolls-Royce is considering closing its final salary pension scheme after its pension deficit rose by 15% last year.

The company could join a growing list of employers that have either scrapped or altered their pension schemes to address deficits, including Rentokil Initial, Co-op Group and Scottish Power.

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Rolls-Royce is seen as one of the more paternalistic companies when it comes to pensions. Three years ago and after consultations with staff representatives it reduced benefits rather than close its final salary scheme – to which most of its 22,000 British staff belong.

But last week the company admitted it “will review further actions in the light of the actuarial review of the main scheme, which is due this year, and the changing regulatory environment”.