Aviva and RAC to close final salary schemes

The 7,600 employees affected will be consulted on proposals to switch to the firms staff money purchase arrangement from April 1, 2011. There are no changes for retired and deferred members. Aviva UK chief executive Mark Hodges says the insurer would continue to provide sustainable benefits to its members - despite the Aviva and RAC schemes overseeing combined deficits of £3bn. He says: "Our proposal would enable us to protect the final salary pension benefits that employees have already built up. It would provide a competitive alternative for them and simultaneously reduce the volati...