Unisys consults over future of final salary pension

Unisys UK is in consultation with its UK Works Council after proposing to close its defined benefit (DB) pension scheme to future accruals from midnight 30 November 2007.

Employees at the IT services provider have been notified and received relevant information about the proposals.

A spokesman said: “The proposed changes to the UK pension plans are part of a global move by Unisys to provide a competitive retirement programme while controlling the level of expense and volatility of retirement costs. Earlier this year, Unisys implemented similar changes in the United States.”

Unisys confirmed that previously accrued benefits will not be affected by the proposed changes to the scheme.

The union Unite, has condemned the proposal. Peter Skyte, Unite national officer, said: “Whilst a number of companies have closed final salary schemes to future employees, very few have done so for existing members as well. This move can only damage employee morale and make it more difficult for Unisys to improve its lack lustre performance in the UK over the coming period.

“Unite believes the company’s proposals are completely counter-productive and we will do everything we can to resist them over the coming period.”

The consultation will end on 13 November 2007.