The Trustee has written to participating employers about a proposal to close the Scheme to future benefit accrual from a date to be agreed. The Trustee believes the increases in contributions needed to cover the cost of future benefit accrual would be unaffordable for many employees and employers.
The Trustee is initially seeking feedback from employers. If employers support the proposal, they will need to carry out a statutory consultation with their employees to get their views.
If the proposal goes ahead, all member benefits built up to the point of change will be protected by law and by the Scheme’s rules. All past benefits will be preserved and revalued in line with the Scheme’s rules. Benefits already being paid to pensioner members and their beneficiaries are not affected by the proposal.
The great news is the Scheme has enough money to pay every member all their promised benefits in full.
