Unilever latest company to close final salary pension scheme

| April 12, 2011 | 0 Comments

Unilever has announced it is to close its final salary pension scheme citing “unsustainable” costs.

The manufacturer of food and household products is the latest in a long line of companies to adopt these measures as a result of rising costs.

Defined benefit [final salary] schemes have become significantly more expensive to operate and costs are likely to rise in the future.

Commenting on today’s announcement, a spokesperson for the company said: “Under the proposed new arrangements, existing final salary scheme members would be offered a two-part scheme consisting of a defined benefit career average plan plus a defined contribution investing plan with effect from 1 January 2012.”

Sugar firm Tate & Lyle, newspaper publisher Trinity Mirror, Asda, Northern Rock and Aviva have all closed their final-salary pension schemes in recent times.

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