HARRODS CLOSES DOORS ON PENSIONS

PUBLISHED: 13:18 09 February 2006 | UPDATED: 09:37 06 May 2010

THE pension scheme at Harrods is no longer open for business, a new announcement has just revealed. The London department store has notified staff about closing its final salary scheme to new and existing employees. The proposed shut down will take effect

THE pension scheme at Harrods is no longer open for business, a new announcement has just revealed.

The London department store has notified staff about closing its final salary scheme to new and existing employees.

The proposed shut down will take effect at the beginning of April.

Harrods said the decision was not taken lightly and that a new money purchase scheme will be introduced.

According to the Transport and General Workers Union there are 1,500 members of the pension scheme who will be directly affected by the changes.

Union officials said workers were shocked by the decision, and that it is demanding official talks with Harrods over the issue.

Harrods said longer life expectancy, lower interest rates, higher taxes and recent low investment returns had all contributed to increased funding deficits and the cost of providing future defined benefit pensions.

Over the last few years, the UK has seen a growing trend among pension funds of closing final salary schemes in the private sector to new members.

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