Although employees will still be able to contribute to their final salary scheme, the final pensionable salary will be capped at their December wage. Employees can continue to contribute to their pension, but anything over their December salary must be provided through the company's money purchase scheme.
Archant's final salary scheme's liabilities amounted to about £150m at December 31 2008, but it only had 71% of the required funds, meaning there was a shortfall of £43m.
The final salary scheme was closed to new entrants 11 years ago and now has fewer than 270 active members from a staff of about 2,000. It was replaced by a money purchase scheme in 1998.
Employees can also leave the final salary pension scheme to join the money purchase scheme if they prefer.
Adrian Jeakings, chief executive of Archant, said the review of Archant's final salary pension provision concentrated on "reducing pension scheme liabilities and the rate of their growth" and concluded that changes should be proposed to the active membership.
Under today's announcement, Archant has started a preliminary consultation process with staff in order to debate the proposals, but the formal 60-day consultation is likely to start in late August.
.jpg)
.jpg)