William Morrison dumps final salary pension scheme
As Barclays bank moves towards a significant change in its final salary pension scheme, supermarket chain William Morrison has today followed suit suggesting that future benefits for its 10,000 final salary scheme members will be based on average career earnings and not their final salary. This is a significant change in the future make-up of the William Morrison pension scheme and one which is being reflected in other parts of the UK economy.
Unfortunately, what started as a trickle is almost certain to turn into a tidal wave as UK businesses look to cut their future pension liabilities and concentrate more on their main stream operations. When you consider the billions upon billions of pounds of pension fund deficits around the UK this was only a matter of time as historic changes to the taxation of pension assets and pension income is starting to hit home.
So far the UK government has been very quiet on the subject of final salary pension schemes, despite the fact that MPs have their own final salary scheme, but frankly there is little they can do as changes in the past have finally taken their toll. A move to money purchase pension schemes will see many people receive significantly lower pensions in the future.
Share this..
Related stories
LIBOR rate falls to 4.49%
The vital LIBOR rate has fallen 1.1 percentage points to 4.49% since the Bank of England reduced interest rates which has breathed new life into the money markets. Even though the fall of 1.1% is less than the 1.5% reduction in interest rates this is very much welcomed by the financial community which has seen borrowing costs increase massively over the last 12 months. However, some experts are su...
Read MoreTories announce People's Bank bonus
The Conservative party has been under pressure for some time now regarding limited new initiatives with severe criticism from Labour party supports. However, it looks as though David Cameron and George Osborne may well have gazumped Gordon Brown yet again with the suggestion that taxpayer share stakes in Royal Bank of Scotland and Lloyds bank will be sold off to the UK public at a discount to the...
Read MoreUK government issue £6 million grant to Vestas
As we covered just a few days ago, while the UK government was announcing plans to spend hundreds of millions of pounds on eco-friendly projects throughout the UK, the Danish owned turbine manufacturer Vestas announced plans to close its factory on the Isle of Wight. The timing of the announcements could not have been worse for the UK government with the Danish company citing the fact that wind tu...
Read MoreDevastating floods could cost insurance industry over £100 million
The devastating floods in Cumbria and South Scotland could cost the UK insurance industry in excess of £100 million although this figure could rise significantly because the flooding has yet to subside. We have literally seen homes washed away in the flood water, vehicles left battered on the road site and indeed we have seen the unfortunate sight of casualties and fatalities during the floods....
Read MoreTUC attacks government spending cuts
In a damning assessment of the UK government's proposed budget cuts and tax rises the TUC has today issued a report suggesting that pensioners and single parents will bear the brunt of the forthcoming budget changes. Indeed the TUC believes that the poorest elements of the UK society will be hit a worrying 10 times harder than the rich. Not only does the TUC believe that direct cuts will impact...
Read More