FINAL SALARY SCHEMES STATUS B Last Updated Wednesday, June 30, 2010 |
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* Registered with FAS
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Joint administrators Nick Miller and Ian Robert of Kingston Smith were appointed by the Royal Bank of Scotland to the Park Royal, London based firm
(1 February 2006). Babs was majority owned by German-based Krug & Priester, which also owns finishing kit manufacturers Ideal and EBA, which Babs was sole UK agent for. |
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Comments: 13 Sept 2007 BAA was bought by Spanish construction group Ferrovial in 2006, said the current market volatility and the trend in private business towards cheaper retirement plans had persuaded the board to shut the plan to new staff. Scheme currently has £29m black hole. |
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Comments: See - United Industries Group Pensions Scheme |
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Comments: The company was owned by Raytheon Engineers and Constructors, but was sold to a company named Washington International in late 2000, early 2001. |
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Comments: Bjorn Stiedl, 44, a Danish businessman, used some of the money to pay off his wife's mortgage and plundering more than £2 million from Balfron Group's pension fund. Mr Stiedl's company, Crisun, bought Balfron's pension fund for £450,000 in 1994. By the time Stiedl was caught, 200 former workers from Balfron Group were left with a £2.135 million hole in their £5 million pension fund. But, with interest, the losses have soared to approximately £4 million. |
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From a member of the pension scheme In 1990 they bought Rush and Tompkins, a British construction company that had gone into administration. Rush and Tompkins had a final salary pension scheme and the retained staff, including myself, were made members of a "mirror image" scheme set up by Ballast Nedam Construction. This scheme was a closed scheme and no new members could join. All new staff after 1990 joined the existing Ballast Nedam pension scheme. The Dutch parent withdrew financial support from it's British subsidiary in October 2003 and this has made the British subsidiary go into receivership (Deloitte and Touche). According to press reports, about 1000 staff are affected from both pension schemes. We have received no information to date other than redundancy notices and that the pension scheme is to be wound up. The company had offices throughout the UK. My office was at Billingham in Teesside but my local MP is Lawrie Quinn, Labour MP for Scarborough.
Further information supplied on Ballast Ballast
plc was known as Ballast Wiltshier plc until October 2000, when it
chanced its name.
The result of the liquidation of Ballast Wiltshier is that the pension members, are, or will be, only receiving 30% of their pension entitlement. |
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Comments: July 2007: The bank plans to close its final salary pension scheme and raise the retirement age of new staff from 60 to 65. |
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Comments: June 2009 Barclays has proposed closing its final-salary pension scheme for British staff. The bank had started consultations with staff as part of its 2009 pensions review, and committed to ensuring its pension benefits were "equitable and remain competitive." Benefits for existing scheme members would be locked in. July 2009: Barclays said it was shutting down its final salary pension altogether and moving 18,000 staff to a less generous retirement package Although 1,500 of its top earners were not affected. August 2009: Barclays is considering enhancing its pension fund following a furious reaction from staff about the decision to close the final-salary scheme to plug a £3.5bn gap. August 2009: Barclays has pumped £500m into its final salary pension scheme and agreed to make a cash pay-out worth 5 per cent of salary to affected staff, after its decision to close the scheme prompted anger from employees. |
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Comments: July 2009 Builder Barratt is to shut its final-salary pension scheme. Bosses blame the decision, which will hit 350 workers, on an £87million deficit in the fund and growing life expectancy. |
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Comments: April 2006: The final salary scheme will close to new members from later this year and be replaced with a less generous career average scheme, while contributions will increase both for workers and the corporation. June 2010: The BBC has announced plans to overhaul its pension scheme to plug a £2 billion deficit. It is proposing to close the scheme - which offers members a pension based on their average earnings during their career - to new joiners from December 1. The BBC will keep the pension open to existing members, but said it wanted to change the terms so that salary increases used in pension calculations would be capped at 1 per cent a year, even if members received a higher pay rise. The pension blow follows a recent review of the scheme that discovered the deficit had ballooned from £470 million in 2008 to about £2bn. The broadcaster, which will launch a 90-day consultation over the plans, introduced the current defined benefit scheme in 2006 when it closed the previous more generous final salary pension to new members. |
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March 2006 Berkeley Berry has
been close to going into administration for the past few months. Just two
weeks ago, two businesses were sold off to raise £2.35m for working
capital.
Although none of the scheme members qualify for more than the £25,000 PPF maximum payout, the Berkeley Berry scheme offers a 5pc annual inflation indexing that will be lost with the PPF. |
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Comments: This company was a subsidiary of a Japanese Group, Benkan Corporation, but had previously been owned by GKN. |
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Comments: Went into receivership. Part of company restarted and is now profitable |
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June 2004 The trustees are attempting to recoup cash for about
150 workers. It is understood that the pending lawsuit will focus on
allegations of mismanagement of the fund. But it also believed that it
will look to reverse a decision which allowed the three directors to take
early retirement - a move which is alleged to have placed a further burden
on the fund. All three directors in question were also trustees of the
fund. A figure of a maximum of 60% of people's fund has been mentioned as
the maximum that people will get. PS Independent Trustees were called in when it became apparent that the pension fund was £8m short of the £14m needed to meet its liabilities.
August 2004 The scheme’s former actuary, Buck Consultants (since bought over by Mellon Financial) and three former directors were issued with summonses in July. Two of the directors involved were trustees. Part of the Punter Southall action relates to the way directors were able to take their pensions early at this sensitive time without the kind of reduction normally associated with a scheme in dire straits. One director retired in April and two others in May. It has now emerged that the pensions age was raised to from 65 to 75 from April 1. The scale of the crisis only became clear when the fund was revalued on wind-up, and 65 was again used as the appropriate age as that was when virtually all pension rights, apart from the last two months, had been accrued. September 2007 THE early retirement of two directors contributed to a gaping hole in a Scottish engineering company's pension fund, a tribunal has been told. The deficit in the final salary scheme grew by nearly £1m to £6m when a number of senior bosses left Edinburgh firm Blyth & Blyth. |
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Comments: November 2009: BMI, the struggling airline now owned by Germany's Lufthansa, is cutting at least 600 jobs and closing its final salary pension scheme to about 1,000 existing members as it fights to stay airborne. |
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Comments: December 2008: Bonas Group pension scheme has been afforded full membership of the fund |
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Comments: April 2009 Alliance Boots is considering closing its final salary scheme to existing employees, limiting the size of pension benefits that are salary linked.
In an interview with the Financial Times, Stefano Pessina, executive chairman, described the existing arrangements as unfair because they give very generous benefits to a relatively small number of existing workers and much less generous retirement benefits to a larger number of others. Alliance Boots has 16,000 members in its defined benefit – or final salary – scheme, compared with 4,500 in its defined contribution – or money purchase – plan. It employs 93,000 people across the world and 73,000 in the UK.
As part of the deal to acquire Alliance Boots for £12.4bn in 2007, Mr Pessina reached an agreement with the pension trustees to continue funding the Boots pension scheme, paying £418m into the scheme over the next 10 years. The payments included an up-front payment of about £52m. January 2010: Boots has begun a three-month consultation with the 15,000 workers in the scheme which will almost certainly end up with them being moved to a defined contribution scheme. Alliance Boots said that only one in five of its 75,000 British workers was in the final salary scheme, 5,500 are in the existing defined contribution scheme and the vast majority — almost 55,000 — are in no scheme at all. The company claimed it was not making the move to save money. It said that if everyone joined the defined contribution scheme the cost to the firm could actually be greater. Instead, it said, the new scheme would be more “sustainable” than the final salary scheme. |
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Comments: July 2008 - Connaught has bought the assets of Botes Building from the administrator, Kroll, for £3.2m. |
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Comments: June 2009 BP will close its final salary pension scheme to new employees from April 2010 as part of a long-term cost savings plan. It will instead offer a defined contribution (DC) scheme for new joiners, and will continue to contribute 15% of employees' salary, with a minimum of 5% going into the fund. Staff will be able to take any difference as cash. When last valued in 2007 the DB scheme was 134% in surplus and the 2008 figures also set to show a healthy position. A spokesman said the closure did not represent a knee-jerk reaction to the economic downturn, but a move to protect shareholder interest in the long-term. Current employees will continue to accrue final salary benefits and will not be affected. Meanwhile, BP said it was trying to put together a more flexible package for staff, and plans to launch a flexible benefits scheme. It is currently in consultation with staff and suppliers to finalise the details of scheme, but did confirm that free private health insurance would be offered to all staff. |
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Comments: Sold to American company Apache, pensions wound up. TUPE also involved |
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Comments: The scheme entered wind up as a result of the High Court Compromise settlement. Wind up means a loss of 90% of benefits , The compromise did not work and the company went into liquidation at the end of 2003. Nicholas Bryce-Smith of the Bradstock Group got his pension at the end of March 2002 and the Fund was put into wind up in May 2002 ! |
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Comments: See also Federal Mogul and Turner & Newell. Staff have been asked to keep paying contributions into a bank account until it is decided what will happen. |
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Comments: Applied for the PPF |
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Retirement age raised from 55 to 65 (60 for pilots), injecting £500m lump
sum into scheme
Nov 2006: British Airways plans to eliminate its £2.1bn pension deficit within 10 years by injecting £950m into its retirement scheme, nearly double the previous offer. Nov 2006: British Airways has made its second set of concessions in two days in a bid to tackle its £2.1bn pension deficit but unions are still refusing to sign up to a deal. After a lengthy meeting, the airline bowed to union pressure and agreed to lower its proposed normal retirement age for all staff, including pilots and cabin crew, from 65 to 60. In return for this concession, the airline said employees would have to increase their pension contributions. For the first five years, ground staff who choose to retire at 60 will have to raise contributions from 5.25pc to 10pc of pensionable pay, while air crew will have to put in 11.25pc, up from 6.5pc. After five years, rates harmonise at 10pc. BA has also agreed to raise its annual contributions from the £250m announced on Wednesday to £272m. Jan 2007: BA has agreed to make a one-off contribution of 800 million pounds into the pension fund subject to acceptance of benefit changes. December 2009: British Airways could close its final salary pension schemes to existing members after disclosing that the deficit has rocketed to £3.7bn and that the Pensions Regulator may deem that an undershoot. March 2010: The airline has agreed with the main unions representing pilots, cabin crew and ground staff that workers will contribute more of their monthly salary to preserve their retirement benefits. Those that want to retire aged 60 will increase their contributions from 8.5% of salary currently to 11.5% from October this year, then to 13% from October 2011. Meanwhile, those that aim to draw their pension from the age of 65 will have to almost double their contributions from 5.25% to 9.75% from October 2011. |
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BUSM was bought by venture capitalists in 1995. It demerged in 1997.
It went into receivership with substantial debts in October 2000.
The surviving company was sold and
there was a successful MBO. 124 of the deferred pensioners are
over 55, many taken on as apprentices aged 16. They
expect 10% or less of their pension but have not yet had any official
notification.
Windup started by Law Debenture, December
2000, completion probably August 2004.
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Independent
Trustees (Jardine Lloyd Thompson) appointed
March 2003
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Comments: October 2008 Reviewing final salary scheme December 2008 BT wants to cut the traditional link with final salaries, raise the normal retirement age to 65, and build up pension entitlement at a slower rate. The changes for 65,000 staff in the BT final salary scheme will affect pensions earned after 1 April 2009. February 2010 BT has agreed to pay off a £9bn deficit in its pension scheme over the next 17 years. 2 March 2010 BSkyB, Carphone Warehouse and Cable & Wireless yesterday attacked proposals to allow BT to increase its wholesale prices by 4pc. The rivals claimed that BT only has itself to blame for its huge pension deficit and said their customers should not be forced to pay higher prices to help BT pay for its mistakes. |
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Home A B C D E F G H I J K L M N O P Q R S T U V W XYZ
The information on this website has been supplied by members of the various final salary schemes listed and others. Accuracy is important to us, but errors are inevitable as the subject itself is an extremely emotive one so the information on this site cannot be guaranteed. We hope that we have reflected the current situation in as an unbiased way as possible.