Scheme Closure Dashes Pension Dreams

Summary


DREAMS of a worry-free retirement were dashed for millions of employees in private industry last week, when Barclays Bank and BP became the latest household names to withdraw pension benefits.

Barclays, which stopped salary-linked pensions for new employees in 1997, is now ending the perk for most existing staff who thought their pensions were safe.

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Extract


Scheme Closure Dashes Pension Dreams

BP, that oil-rich, last bastion of the treasured, final-salary scheme for all staff, will no longer offer it to those who join from next April.

Given that a final-salary pension scheme requires employers to contribute up to 25 per cent of an employee's wages, removing...

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