On the go: The £9.3bn Rolls-Royce UK Pension Fund has now closed to future accrual after conducting a consultation with members in 2020.
The scheme, which was fully funded with a 104.8 per cent ratio at the end of last March, entered a review of its benefits structure in May 2020.
A Rolls-Royce spokesperson revealed that a consultation began “with active members and employee representatives on a proposal to stop the build-up of any further benefits in our defined benefit pension scheme”.
In November, the scheme informed members that it would close to future accrual from December 31 2020. The spokesperson commented: “This was a difficult decision that followed an extensive consultation period.
“We reviewed the scheme because of the impact of Covid-19 on our business. In the past, we committed to keep the scheme open until the end of 2023, other than in extreme and exceptional circumstances which are beyond our control,” they explained.
“Unfortunately, that is the position we found ourselves in due to Covid-19, and we have had to take very difficult actions to protect our business and secure our future.”
This article originally appeared on Mandatewire.com
