11 May 2007
Staff at the Royal Opera House in London have voted to accept
the closure of their final salary pension scheme to new joiners,
and have also agreed to pay higher contributions to the scheme.
Last November the Royal Opera House (ROH) warned that the
pension scheme might have to close altogether because of a deficit
of £8m. It said that if it did not take steps to curtail the
cost of the scheme, then its own contribution rate might have to
rise from 15% of salaries to 26%, which it could not afford.
Members of the trade union Bectu have now voted by 89% in favour
of a proposal to close the final salary scheme to new entrants.
Existing members of the scheme will now pay 8% contributions
instead of 6%, while future promotions will no longer count towards
their final salary pension.
Management at the ROH said that they expect that the deficit in
the scheme will now be eradicated during the coming years as staff
will be paying in more, increases to their pensionable salaries
will be capped at 3% a year, and increases to pensions in payment
will also be capped.
New recruits to the ROH will be offered membership of a money
purchase pension scheme instead. They will have the choice of
contributing either 3% or 5% of their salaries, with the ROH paying
in double the staff contribution.
