Computing group Logica plans to close its final salary pension scheme as part of a restructure of its pensions arrangements in the UK.
The plans to close the scheme to future accrual will affect 470 employees, representing 8% of the firm’s UK workforce. A Logica spokesperson described the move as a “prudent” step towards the management of the firm’s liabilities (reportedly £14.9 million) within its final salary scheme.
Employees will be given the opportunity to join the existing defined contribution (DC) scheme, which Logica is looking to improve by increasing employer contributions to create a “comparable benefit” to the defined benefit scheme.
A statement from Logica said: “Logica can confirm it is proposing to restructure its UK pensions arrangements, moving towards one consolidated defined contribution scheme. This will offer staff increased flexibility in the provision of retirement income, driven by increased pension awareness within a changing economic climate.
“Logica believes it is critical in a DC environment to provide access to pension education and superior online tools for managing personal portfolios, whilst recognising for some, that access to pre-programmed “lifestyle” investment programmes are appropriate. Our proposed scheme will address these issues.”
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