Food and household product manufacturer Unilever has become the latest major company to close down its final salary pension scheme to existing members.
The firm, who are the latest in a long line to make such a move, explained the scheme had become “increasingly unaffordable and unsustainable”.
Unilever announced it would start a 90 day consultation with staff and unions as the change’s will affect the schemes 7000 active members.
The scheme was shut to new staff in 2008.
In a statement released yesterday the firm said, “Under the proposed new arrangements, existing final salary scheme members would be offered a two-part scheme consisting of a defined benefit career average plan plus a defined contribution investing plan with effect from 1 January 2012.”
The news came on the same day that the Pension Protection Fund (PPF) revealed that March’s surplus figure for the 6,533 final-salary pension schemes in the private sector of this country was £45.5billion, down from £48.4billion in February.