Dartington Crystal is to wind up its final salary pension scheme for employees. The move is the latest cost-cutting measure after a turbulent year in which sales faced a “challenging time.” However, t…
Dartington Crystal is to wind up its final salary pension scheme for employees. The move is the latest cost-cutting measure after a turbulent year in which sales faced a “challenging time.” However, the company said it would continue to make pension provision. In a statement the company said it entered into negotiations with the scheme“s trustees regarding the future of the current final salary schemes in September 2003, at the same time as 43 jobs were cut. In the last two years many UK companies have moved from expensive final salary schemes, under which beneficiaries are guaranteed a percentage of their final salary, to cheaper contribution-based schemes, where the amount paid out depends on the level of contributions. The company statement said: “The future liabilities associated with final salary schemes is one of the major barriers to securing future finance, which is necessary for the long-term survival of the company.” “The company has now reached a compromise agreement with the current scheme“s trustees that will remove this liability to the company going forward. “As a result of this decision the current final salary schemes will be wound-up.” The manufacturer began far reaching consultations with employees regarding the proposals. The statement added: “It is the company“s intention to implement – and contribute to – a stakeholder scheme to allow employees to continue to make a pension provision.” “While this course of action has been a very difficult one to take, it is one many UK companies with final salary pension schemes are having to consider.” “Dartington Crystal remains committed to providing competitive employment benefits for its workforce, and will continue to consult closely with them.” The workforce now numbers about 180.