NSPCC closes final salary pension scheme for all staff
David Woods, July 30, 2009
The National Society for the Provention of Cruelty to Children is to close its final-salary pension scheme.
The change, which will affect all 900 staff, will be implemented from 31 December this year. The decision follows a raft of 150 redundancies in March and a pay freeze.
Ian Chivers, director of finance at the children's charity, said: "Regrettably we have had to close the final-salary pension scheme because of the extent of the scheme liabilities and the level of financial risk this presented for the society. We could not afford to let these liabilities grow further without risking an impact on our services and the critical work we carry out to help vulnerable children. By closing the scheme to further accruals we have achieved a still significant but much more manageable scheme deficit and, as a result, the pensions our members have earned to date will be much more secure.
"We understand this will have a significant impact on many of our staff and within the constraints of affordability are putting transition arrangements in place to ease the impact on staff nearing retirement and to help all affected staff move to our stakeholder pension scheme."
He added: "This was a very difficult decision but we are not alone in going down this route in these difficult financial times. Many large corporations have also found it too much of a burden to continue with final-salary pension schemes."