UK Coal has confirmed its intention to close its two defined benefit (DB) pension schemes to future accrual.

The closure, which will go to consultation with staff in the first instance, is one of the proposed changes to manage a £300 million deficit in the firm’s two DB schemes.

The schemes were put in place in 1994 when the mining firm was privatised, and are already closed to new members.

Approximately 1,200 of the coal mining firm’s 2,800 staff are still in one of the schemes, while the remainder are in a trust-based defined contribution (DC) scheme.

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