UK-based risk management and insurance broker Jardine Lloyd Thompson Group has announced that it is closing its final salary pension scheme, which is GBP145 million in deficit.
Members of the current scheme will be offered a defined contribution scheme which the firm said would be flexible and competitive. The financial impact on the scheme is yet to be finalized, although Jardine Lloyd Thompson confirmed that the reduction to the deficit would be material.
The group said in a statement: We intend to make an initial cash contribution of GBP35 million to the DB scheme and additional contributions totaling GBP30 million by 2009. These changes will enable us to better manage the long-term growth and development of the group.