31 August 2010
Consultation between the Shop Direct Group and their employees
over the closure of their final salary scheme with effect from 31
December 2010 has begun.
It has been reported that the affected staff are being offered
the opportunity to become a member of a Standard Life Stakeholder
Pension Plan. Those who accept to become a member will receive an
employer contribution up to 5% of their salary and that all
benefits accrued before 31 December 2010 will be protected.
Shop Direct's Group Chief Executive, Mark Newton-Jones said:
"We recognise this is a considerable step to take but we believe
this proposal is the right way forward in terms of reducing
exposure to the volatility of financial markets and providing more
equitable pension provision for our colleagues."
The Union of Shop, Distributive and Allied Workers have said
that they are "extremely disappointed" with the move and their
national officer, David Johnson said:
"While we recognise that even many profitable companies have
closed their final salary pension schemes, we are very concerned
about the impact this could have on our members and their plans for
retirement. Consultation on the proposals has started and further
talks with the company are currently being arranged."
For information on Group Stakeholder Pension Schemes click here
