Zurich to close 'unsustainable' DB pension schemes

clock

Zurich is consulting members about closing its final salary schemes to future accrual.

The insurer said the present arrangements were unsustainable. Under the proposals from 1 July all employees will be entered into the defined contribution (DC) scheme that is currently in place. Zurich would pay a flat rate of 12% of pensionable salary into each employee's retirement account. Those currently in the final salary section would build up no further benefits after 30 June 2015. All new starters from 1 July 2015 would join the amended DC section of the pension scheme. The proposals would make Zurich one of the last insurers to close its defined benefit (DB) pension to f...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Devilish details: Protection and the abolition of the LTA

Devilish details: Protection and the abolition of the LTA

'There are a number of subtleties to be aware of'

Thomas Coughlan
clock 22 March 2024 • 8 min read
L&G Retail launches adviser handbook on later life divorce

L&G Retail launches adviser handbook on later life divorce

To help support advisers dealing with clients going through a divorce

Jenna Brown
clock 21 March 2024 • 1 min read
New occupational scheme launches; BSPS rescue proposals set out

New occupational scheme launches; BSPS rescue proposals set out

Former British Steel workers will be able to ‘reverse transfer’ their pots

Jonathan Stapleton
clock 14 March 2024 • 2 min read