12 August 2009
Interserve, the support services and building company, is to
close its defined benefit pension scheme. The scheme has already
been closed to new employees for seven years. However it has now
decided to close its defined benefit pension scheme to future
accrual as well. This affects around 900 employees. The decision
was made despite the firm posting an 18.7% increase in interim
pre-tax profits. Its pension deficit of £250m has prompted the
company to close its final salary
Adrian Ringrose, Interserve's chief executive, said the move to
scrap further accrual came as talks continued with pension fund
trustees over how best to make up the pensions shortfall.
The company, which employs 26,000 staff in the UK and 50,000
worldwide, will continue to operate defined benefit deals for a
small percentage of staff transferred from the public sector whose
defined benefit pensions are partly underwritten by the
government.
