Pirelli Plans to Shut UK Final-Salary Pensions: Reports

Reports from multiple news sources suggest that Pirelli is planning to shut its final-salary pension scheme in order to protect the company’s future. The closure would, according to the BBC, affect 743 staff members, all of whom would be eligible to join the defined contribution scheme open to new recruits to the manufacturer since 2001. Consultations with staff have begun, with a view to cancelling the scheme at the end of 2009.

The company has suggested that the “increasing age longevity of the pension population” has led to the need to protect companies from the cost implications of final-salary schemes. Morrisons, Barclays, IBM and Fujitsu are among the other large companies in the UK who have made similar adjustments to their pension schemes.