FINAL SALARY SCHEMES STATUS R Last Updated Friday, November 13, 2009 |
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Final-Salary
Scheme was wound up by Rael Brook Group Ltd.
in 2003 but the Company is still solvent. |
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Comments: Pension expected (not known) |
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Comments: Dexion UK were parent company. |
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Comments: Jan 2007: More than 1,000 staff at precision engineer Renishaw will lose their generous retirement benefits. The company, valued at £600m, is closing its final salary scheme to new and existing members to address a widening £41m pension deficit. |
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Comments: Rentokil's 8,000 pensioners and 15,000 former workers with deferred pensions will not be affected. Rentokil proposed the move to tackle a pension deficit of some £349m. Final salary pension scheme closed to all 3,000 existing members, injecting £200m |
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Comments: It is believed that some of those affected paid into the 200-year-old company's pension scheme for up to
30 years. Liquidators were called in
November 2004 after a series of financial disasters. It
is thought the firm's pension scheme, will pay out just a third of what is
owed and that pensioners and prospective pensioners will have to rely on
the Government's Financial Assistance Scheme (FAS) to top this up. Many workers only learned they had lost their jobs after their final wages failed to be paid into their bank accounts. |
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Comments: Information given by a member of the scheme The events so far are that OPRA have looked at the scheme and said that the company have not acted illegally because the protection was not at the time in place.
R K Timber was sold in 1998 (to be confirmed) to J P Corry of Springfield Road Belfast. This was a large group of timber and builders merchants in the UK. At the time the scheme was at 135% mfr and the new owners took a holiday!
Over the next couple of years JPC sold off most of the companies including my own and left only one operational with around 10 employees. All members were told in 2003 or 04 that the scheme was being wound up because it was under funded. We were given a compromise agreement and told that if we did not accept this then the company would go into liquidation and we would get even less since J P C would pump a certain amount of money[ £1.2m] into the scheme to help members. We were not told at that stage that all the money J P C were putting in would go to existing pensioners which was their legal requirement anyway. We were given wrong information all round we were told in the letter that there was little chance that the company would still be trading if it was left until the deadline which would have brought it into the government guarantee. Not true once the compromise was accepted the company started to expand again and took into it's own pension scheme in Belfast the now existing R K Timber employees.
To add insult to injury the majority of ex trustees of the pension scheme, mostly the execs [not JPC] and none of whom were at retirement age took their pension pots when they left the company while we less important deferred members were being told the scheme was safe. |
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Comments: Also know as WH & J Rogers |
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April 2006 - Rolls-Royce are offering to pump £500m into pension fund
in return for closing final salary schemes to new members. The
jet engines maker said it had started a round of consultations with its
three UK pension funds in order to address the group’s total reported
pension deficit, which stood at £1.3 billion in December 2005. Rolls will
also increase the level of contributions as part of attempts to reduce the
shortfall. One scheme has been closed to new employees since 1999.
May 2007: All UK defined-benefit schemes have been closed to new employees, with effect from 1 April 2007 and replaced by a defined-contribution scheme. As part of the discussions, Rolls-Royce agreed to inject a total of 500 mln stg into its UK pension fund, the majority of which is subject to agreement with the trustees on changes in investment strategy. The group will increase the lump sum employees can take on retirement, in line with changes in HM Revenue & Customs practice, and will apply a 2 pct discretionary increase to pensions that do not benefit from any guaranteed increase, it said. These changes will account for approximately 140 mln stg of the cash injection, and will be recorded as a one-off charge in 2007, the remaining 360 mln stg will be used to reduce the group's UK pension scheme deficit, which stood at 665 mln stg at the end of 2006. |
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Comments: August 2009: RBS announced a series of proposed changes to its main final salary pension schemes, including capping the amount of salary increases that is pensionable to 2 per cent annually or the rate of inflation, whichever is lower, and reducing the lump sum payable on early retirement. |
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Comments: RCN
management have told staff that despite securing a final salary scheme for
nurses in the NHS they will have to accept a defined contribution scheme
which means paying more and working longer for the same pension. The RCN
Council have proposed an inferior replacement scheme which immediately
sees the RCN paying 4.6% less pension contributions and puts all the
investment risk on to the shoulders of RCN staff.
Talks on the futures of the final pension scheme continue between GMB and the RCN. |
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Comments: Royal London
has closed its scheme to new members. New employees of the company will now be offered a defined contribution pension arrangement instead. Royal London is one of the first specialist companies to close its scheme to new members. Although many large businesses have closed their final salary schemes, pension firms have tended to keep their's open. From the beginning of September 2005 new employees will have the choice of contributing between 2.5% and 4% of their salary. The company will double the amount paid in by employees. They will also be paid £200 towards the cost of discussing their pension options with an independent financial adviser. |
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Comments: December 2008 Royal Mail's pensions 'black hole' has more than doubled to some £7bn, placing a 'ticking timebomb' under the country's most cherished state-owned industry. Feb 2007: A pension black hole at the Royal Mail has led to a huge fall in the company's profits. Earnings tumbled to £22m between April and September compared with £159m for the same time on the previous year - a drop of 86%. Meanwhile, the shortfall in pensions has risen by £1bn to £6.6bn in the past year; the Royal Mail says it is now closing its final salary pension scheme for new staff. It will be replaced by a scheme to which employees contribute. |
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Comments: Nov 2006: The scheme's deficit has risen to more than £8m and one option is to close it to both existing and new members. A recent letter to employees said if no action was taken the ROH would have to increase its contributions from 15% of staff salaries to 26%. A second option is to close the scheme to new staff and restrict the build-up of benefits for current members. The opera house management is currently consulting with staff and their trade union BECTU and says it would prefer not to close the scheme to its current members. May 2007: Staff at the Royal Opera House in London have voted to accept the closure of their pension scheme to new joiners and to pay higher contributions. Members of the trade union Bectu voted by 89% in favour of the deal. Last November the ROH management warned that the scheme might have to close altogether because of a deficit of £8m. Members are now paying 8% contributions instead of 6%, while future promotions will no longer count towards their final salary pension. |
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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.