You are here: Home - Saving & Banking - News -

Death Knell for WH Smith pension scheme

0
Written by:
11/01/2007

WH Smith is the latest in a long line of employers to close its final salary pension scheme. The retail giant revealed that 11% of its staff, around 2,000 workers, are currently members of the scheme.

WH Smith’s final salary pension scheme has been closed to new members since 1995 – staff joining since then have been offered access instead to the less generous money purchase pension scheme.

The retailer assured those already drawing their pension from the final salary scheme fund that they would not be affected. Neither will former workers who have already left the company.

WH Smiths said that the final salary scheme running costs were “high and difficult to predict”. It already estimates there is a hole of £41 million in the pension fund, and it would have to pay in £50 million over the next five years in order to fund it.

The closure of the pension scheme has already been sanctioned by the trustees, but the company is also obliged under recent legislation to consult with those members affected before proceeding.

WH Smith said that in future staff pensions will be based on “the level of contributions made, investment returns and the cost of buying a pension on retirement.” That contrasts with the final salary scheme, under which an employee receives a guaranteed percentage of their salary for every year they work for the company.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Supermarket sweeps into medical insurance

Tesco is poised to enter the private medical insurance market, building on its current presence in the financial services sector.

Close