Final salary pension attracts jobseekers

first_img Comments are closed. Thehead of personnel at food supply company Northern Foods says the company’sdecision to retain its final salary pension scheme will help recruit and retainstaff in a tough industry.Thecompany reviewed pensions earlier this year, and looked into alternatives, buthead of personnel Chris Edley said retaining the scheme was the best option.”Wewere going to do what everybody else has done,” he said, “but we feltuncomfortable with it as our business has a history of good schemes.”NorthernFoods, which supplies ready-made meals to supermarkets, will continue to pay anamount equivalent to 10 per cent of its employees’ salaries into the group’scontributory scheme, but, to ensure the scheme’s viability, staff are now beingasked to increase their personal contributions from 5 per cent of pay to 7 percent.Edleysaid the change was fully supported by the four major trade unions with whichthe company deals, and just 5 people out of the 10,000 members decided not tocontinue in the scheme.”Ithink it will give us an advantage as labour is not easy to come by in the foodindustry,” he said.Lastmonth, car giant Ford announced it had decided to pay more into its finalsalary pension scheme. However, the list of UK employers abandoning this formof pension – preferring cheaper plans that transfer the investment risk to theemployee – is growing by the week, with British Airways, BT, Marks &Spencer, Dixons and KPMG all closing their final salary schemes to new employees.Thedirector general of the British Chambers of Commerce David Frost warned thatthe Government’s review of the pensions tax regime must be used to reverse thistrend.By Quentin Reade Final salary pension attracts jobseekersOn 3 Dec 2002 in Personnel Today Previous Article Next Article Related posts:No related photos.last_img

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