Rolls-Royce 'to inject millions' into pension funds
Rolls-Royce has announced that following discussions with representatives of its UK employees, the firm has agreed to invest £500 million into its company pension funds.
Other actions taken by the firm include closing defined benefit pension schemes to new UK employees from the start of last month, with these schemes being replaced by a defined contribution agreement.
Sir John Rose, chief executive of Rolls-Royce, commented that the firm was pleased to have reached an accord with employee representatives on these matters.
"The objective of these changes is to reduce substantially the volatility of the cost to the group of meeting the pensions obligations while providing employees with competitive pensions," he said.
Rolls-Royce has also increased the size of the possible one-off payment employees can opt to receive by exchanging part of their pension.
In March 2007, Barclays reported that many small and medium-sized employers are failing to provide their staff with access to a company pension scheme, while arguing that businesses should advise their workers of the importance of saving for retirement.
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