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Dairy Crest to close its final-salary pension plan to further accruals

Dairy Crest is to close its final-salary pension scheme to existing members.

The company, which manufactures dairy products including Frijj, Cathedral, Clover and Utterly Butterly, plans to close the scheme in April 2010, affecting 3,500 of its 8,000 UK staff.

In June 2006 the company closed its defined-benefit scheme to new employees.

A spokeswoman from Dairy Crest told HR magazine: "Over the past year we have continued to reduce risks associated with operating a defined- benefit pension scheme. To further reduce risk, we intend to close our defined-benefit pension scheme to future accruals with effect from 1 April 2010.  

"We have had a very constructive consultation period with the members of our defined-benefits pension scheme. As a result of this process we will be helping our members make the transition from the current pension arrangements to the new arrangements with an effective date of 1 April 2010.

"We expect to conclude discussion on this matter with the scheme trustee in two to three weeks at which point we will be in a position to confirm full details of new and transitionary arrangements to our employees."

Existing members and new recruits will now be encouraged to join a defined-contribution plan.