Aviva closes final salary pension plan
Insurance giant Aviva has announced plans to shut the group's final salary pension schemes in a blow to about 7,600 employees in Britain.
The group, which also owns the RAC motoring group, said it was to begin consultation in June with a view to closing its final salary pensions to both new and existing members from April 1 next year. Aviva closed its pension scheme to new entrants nine years ago, but the RAC pension scheme, which has some 2,000 members, is currently open to new members.
Aviva stressed that retired and deferred members would not see any changes, while it will ring-fence contributions built up so far in the final salary schemes so that only future accruals from both new and existing members would be switched into the so-called defined contribution scheme.
Aviva is the latest employer to shut its final salary scheme as pension liabilities soar.