It seems that even the computing giant IBM are have problems with their final salary scheme UK pensions.
At the beginning of the month IBM announced that it was starting a 60 day consultation with final salary UK pension scheme holders.
The 500 members will meet with IBM to hear what the company intends to do to enhance the current defined benefit payments and then close the scheme permanently.
If the proposed plans are agreed to, then the schemes will be closed to new and existing members.
IBM isn’t the only company facing issues with their pension schemes and many people believe that Gordon Brown’s leading as Chancellor of the Exchequer has been our downfall.
Gordon Brown reduced tax benefits to pensions in order to increase government income. There were warnings, but the Government proceeded and subsequently a significant amount of money has been taken out of the pensions sector.
Final salary schemes now look to be in much jeopardy and it is thought that more will close and become a thing of the past. Many will be left with only money purchase arrangements and having to contend with annuity rates when they retire.