Unilever UK is proposing to close its final salary pension scheme to new employees.
Unilever says these proposals aim to ensure that the company continues to provide competitive pensions for employees on a sustainable basis, whilst at the same time having greater certainty about the future cost of pensions.
All proposed changes to the UK scheme will need to be agreed by the Fund Trustees and are subject to consultation with employees.
The proposed new UK scheme for new employees, which is intended to take effect later in 2007, will be a hybrid arrangement. There will be a defined benefit component, based on career average, covering pensionable earnings up to a threshold of 35,000 pa. Above this threshold there will be a defined contribution component.