Talks On-going Over Closure of Friends Provident DB Scheme For Future Benefits
15 August 2012 (PLANSPONSOREurope.com) – Resolution Limited, owner of Friends Provident, Axa UK Life and Bupa Health Assurance since 2009, has confirmed that talks are ongoing with UK employees over the closure of the Friends Provident Pension Scheme for future service benefits until 21 September.
In the group’s half yearly report it says to help control the risks and cost to the group of funding future service accrual, on 9 July 2012 it began consultation on proposed changes to the defined benefit pension scheme.
The proposed changes are:
• From 31 December 2012, the FPPS defined benefits scheme will be closed for future service benefits. This means that current contributing members of the FPPS will no longer contribute to or build up future benefits in the FPPS; and
• From 1 January 2013, all UK based employees that were contributing members to the FPPS defined benefits scheme, will be offered membership of the Friends Pension Plan ("FPP") defined contribution scheme.
Talks with UK based employees run until 21 September 2012, with changes being confirmed to members by the end of September 2012. The group adds no anticipated impacts of the proposed changes to the defined benefit pension scheme have been taken account of in the 30 June 2012 scheme valuation.