Pilkington Glass is to close its defined benefit (DB) pension scheme to future accrual and move its 1,489 members into the organisation’s group personal pension (GPP) plan.
The manufacturer has paid £120 million in additional contributions into the Pilkington Superannuation Scheme (PSS) over the past four years. However, the cost of funding the scheme has risen in recent years and action had to be taken to protect the future of the scheme.
Pilkington Glass has conducted a three-month long consultation with its DB scheme members and union representatives. As a direct result of the consultation, the organisation will move its DB members into a GPP plan that was introduced in 2008 and is provided by Friends Life.
A spokesperson from Pilkington Glass’ parent company, Nippon Sheet Glass Group, said: “We recognised that responsible action was required to protect the future of the scheme.
“We have been very keen to avoid having to close it completely and have looked at ways of keeping it open while limiting future risk for the benefit of current members.
“We have therefore proposed that the fairest solution is to restrict future accrual in the defined benefits scheme. This will reduce the level of risk run by the organisation in maintaining the PSS as an open scheme.
“We have now written to all employees affected, outlining the final proposals and seeking confirmation of their agreement to the changes.”
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