Employers in the UK will have to consult with employees before making any major changes to the way that their workplace pension scheme is run.
New regulations announced by pensions minister Stephen Timms are designed to bring employees into the decision process by requiring employers to consult the workforce or representatives for at least 60 days before making any changes.
These regulations will mean that employees will now have a voice about any major changes to their pension scheme. Members need to fully understand their pension scheme and the effect that changes will have on it and their future pensions, the pension minister told the BBC.
The move follows a wave of final salary scheme closures and reductions in bonuses as companies try to cut costs. The regulations will be phased in over two years from April, initially affecting firms with 150 or more employees and eventually affecting all companies with more than 50 staff.