Friends Provident to close final salary pension scheme
3 July 2006
Amicus, Britain's biggest private sector
union is extremely disappointed that Friends Provident are to close
its final salary pension scheme to new entrants and force existing
staff to choose between a pay cut and working longer.
Friends Provident are to close their final salary scheme to
new entrants. New Entrants will be eligible to join a defined
contribution scheme which has been improved significantly through
negotiations between Amicus and the company.
For the existing members of the scheme there are two options,
both of which have been significantly improved in confidential
negotiations prior to today's announcement. They can continue to
retire at 60 with contributions rising to 7% by 2010, or they can
retire at 65 with contributions that will go down from 3% to 2% and
then stay level.
Amicus is completely opposed to the closure of the scheme to
new entrants. This seems to demonstrate Friends Provident are
simply "following the market" and embarking on a cost saving
exercise at the expense of staff. This is in contrast to the
company's vision to lead the market into new territory in service
and hugely increased sales, which depends on staff exceeding all
previous expectations and performance.
Hard working staff are being told simultaneously to accept
worse pensions while not meriting pay rises that even keep up with
the cost of living.
Amicus Regional Officer, Barry Jones says, "Amicus is
extremely disappointed that Friends Provident are to close its
final salary pension scheme to new entrants and force existing
staff to choose between a pay cut and working longer."
ENDS
Contact: Ciaran Naidoo 07768 931 315
