It is the motors manufacturer Rolls-Royce's turn to consider closing its pension fund to its new salaried workers, a decision that has already been made by more than half (57%) of the british companies since 2003, according the National Association of Pension Fund's figures. (NAPF) This phenomenon henceforth also concerns the big companies quoted on the Stock Exchange. Let's go back to the causes of this tendancy. (Ref 06393)
Rolls-Royces’ fund was showing a deficit of 1.3 billion pounds (1.9 billion euros) by the end of 2005. According to a model from now on common, it suggests, instead of the traditionnal company’s pension fund, guaranteeing a pension index linked to the salary at the end of the career and the lengh of service, close to the two thirds of the salary, a personal pension scheme.
Company’s complementary pension scheme was working as long as the Stock Exchange was in good health and could ensure the...
Do you have information to share with us?