The current pensions landscape: two contrasting tales
In the wake of the Carillion insolvency and the Toys R Us administration, there are contrasting tales from two different UK businesses.
The engineering business Rolls-Royce is going against the trend and has announced that it will keep its defined benefits pension scheme open for current members until January 2024.
The scheme is running at a £1.4 billion surplus, which will also allow the company to decrease its contributions to its defined benefit retirement fund by £145 million over the next three years.
At the other end of the spectrum, The Pensions Regulator is currently in talks with House of Fraser regarding its retirement fund. This news comes as House of Fraser announced that it is seeking a company voluntary arrangement to allow it to restructure and pay back its creditors over a set period of time. It is also in talks with the Pension Protection Fund. The House of Fraser defined benefits pension plan has been closed to new members and to future accrual since 2012.