Michelin to close final salary pension scheme to all UK staff

Manufacturing News, Source : TheManufacturer.com
Published : 02 May 2007 11:57
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French tyre-maker, Michelin, is to address the growing deficit in its pension scheme by closing the final salary scheme to existing UK members who will be transferred to a money purchase scheme.

Between 2002 and 2006, Michelin’s pension scheme deficit has grown from £57 million in to £260 million, and to prevent this from expanding further, the company has announced that it will be closing the final salary pension scheme to existing member in the UK.

Over 2800 workers at plants in Stoke-on-Trent, Dundee and Ballymena will be affected, and will find their pensions transferred to a money purchase scheme. The finals salary scheme was closed to new staff three years ago.

The transfer is likely to happen in 18 months after a staff consultation period.

 

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