Pilkington unveils plans for pensions

May 17 2008 by Alex Turner, Liverpool Daily Post

ST HELENS-based glassmaker Pilkington has unveiled plans to close the company’s main UK pension scheme to new entrants.

Contributions to the scheme will increase by 50% to ensure that all pension commitments are covered in the future.

Its proposal, which does not affect the 15,000 pensioners and staff who currently draw pensions from the Pilkington Superannuation Scheme (PSS) or have already left the company, will be subject to a consultation period.

The company has been advised to increase the level of contributions to ensure that the current expected benefits can be met. The proposed contribution rate, of 24% of pensionable salary, is one-and-a-half times the current level.

A Pilkington spokesman said: “When our current employees become pensioners, they are predicted to live for longer than their predecessors.

“Whilst living longer is good news, it means that our pensions have to be paid for more years, and will cost more.

The company plans to increase its commitment from 10.5% to 16% of pensionable salary. Employees will be asked to contribute 8%, up from 5.5%, although they will be able to continue contributing at 5.5%. This change must be approved by the trustee board.