Royal and Sun Alliance Switches Employee Pension Scheme
Insurance company moves away from final salary scheme in bid to cut deficit
29th July 2005
Insurance company Royal and Sun Alliance (RSA) has moved its employees' pension schemes away from a final-salary based fund to one based on career-average earnings. The move was an attempt to cut its pension fund deficit, estimated at £500m.
It's thought the switch will close that gap by around £180m.
The insurer said that it had made the change after consulting with staff, and that finance union Amicus had recommended that its members accepted the new scheme.
The pension fund will be further reduced as RSA has said it will contribute £60m a year for the next three years to its schemes.
Read More: Money Guardian
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