Posted on April - 22 - 2010
Aviva staff’s pension blow
Insurance giant Aviva is to shut the group’s final salary pension schemes in a blow to around 7,600 employees.
The group, which also owns the RAC, said it will begin consultation in June with a view to closing its final salary pensions to both new and existing members from April 1 2011.
Aviva closed its pension scheme to new entrants nine years ago, but the RAC pension scheme, which has around 2,000 members, is currently open to new members.
Aviva stressed that retired and deferred members would not see any changes. It is the latest major employer to shut its final salary scheme.
Barclays announced the closure of its scheme to accruals from existing members last June on the same day that BP said it was shutting the door to new members for its 69,000-strong pension fund.
Firms have been pulling the plug on final salary schemes, also known as defined benefit pensions, in droves over recent years as it has become too onerous for them to meet funding commitments.
Aviva said it faced a £3bn funding gap for the final salary schemes – a shortfall that has tripled since March 2006.
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