IBM considering closing final salary pension scheme
IBM, the computer giant, is considering closing its final-salary pension scheme to current members, affecting over 25% of IBM’s 20,000 UK workforce.
An e-mail to staff from IBM’s UK and Ireland general manager Brendon Riley, said the pension fund was being re-evaluated because of rapidly-rising costs and liabilities.
The e-mail said: “For IBM UK also, the rapidly-rising costs and liabilities associated with the provision of defined benefit pensions is placing pressure on our long-term ability to invest for future growth and operate in an intensely competitive global market.”
IBM is just the latest in a series of blue-chip companies announcing similar measures.
Banking giant Barclays announced last month it would be freezing its final-salary scheme to existing members.
Oil giant BP also said it would close its UK final salary pension scheme to new members from April next year, in a bid to cut costs.