Two big names alter pension provisions

Thursday, January 5, 2006

Both the Co-op and Arcadia Group have announced changes to their pension schemes, which has again reiterated the need for adequate pension provisions.

Following the news last month that Rentokil Initial was ending its final salary pension scheme, the Co-op has announced that it is set to do the same.

"This is not a good way to start 2006," said Ron Webb, national secretary for transport at the T&G union.

"The Co-op can be assured that we do not accept the closure of the final-salary scheme as a foregone conclusion."

The Arcadia Group is not scrapping their final salary pension scheme, but it is reworking it. Members of the pension scheme are being told that they must increase contributions by half and work for five years more if they wish to receive the expected pension.

The news is a further example of the way pension provisions can be suddenly jeopardised, so people should save as much for retirement as possible.

The Co-op has suggested that the action is to reduce the possibility of a pensions gap opening up, according to This is Money.

Need to know more about pensions? Click here:
http://www.europinions-finance.co.uk/pensions/pensions/
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