Aviva, the UK insurer and pension provider which also owns the RAC, has announced it is to close its staff final salary scheme to all members from 1 April next year. The firm has stressed that the announcement will not affect benefits already accrued by current or former staff.
The Aviva and RAC schemes have a combined deficit of around £3bn, and the firm says it needs to look at more sustainable alternatives.
Aviva is the latest in a long line of similar announcements from firms such as Vodafone, Morrisons, IBM and Barclays, whose salary-related schemes have fallen victim to volatility and reduced returns in stock markets, changes in tax treatment of retirement savings and increased life expectancy.
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