The volatile stock market has forced another major housing group to close its final-salary pension scheme to new applicants.
Southern Housing Group has decided to switch to a stakeholder scheme from 1 April. William Sutton Trust is to raise its retirement age from 60 to 65 for employees who joined the organisation after April 2002.
It follows the decision of fellow registered social landlords Genesis, Home Group, London & Quadrant and Circle 33 to make the same switch.
Peter Wallop, Southern's head of personnel, said the decision was taken after extensive consultation with staff.
He said the change would help to protect the organisation from an unpredictable stock market and hoped it would increase staff take-up of pensions.
He said uptake of the final-salary scheme had been low, with 60% of employees and a significant number of front-line staff not joining.
Final-salary scheme members can choose to stay put or move to the new stakeholder.
In the new scheme, Southern will give extra contributions for employees who put more into the scheme.
Source
Housing Today
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