The National Trust has started formal negotiations with its trade union on proposals to close its defined benefit pension scheme to future accrual on 31 March 2016, which will affect 1,200 current members of staff.
As of 5 April 2014 the National Trust Retirement and Death Benefits Scheme had a deficit of £116m. This week the charity launched a 60-day consultation on the closure of the scheme and will negotiate with the Trust’s recognised trade union Prospect.
The deficit had increased by £69m since the scheme was last valued in 2011 and the Trust has agreed in principle to increase its deficit recovery payments from £3m per year to £8.5m per year from 2016, which will increase in line with inflation until 2029.
In a statement the charity said: “We have maintained the scheme for as long as possible through good financial management. However, we have made these proposals now because we feel we can no longer sustain the level of cost and risk associated with providing a defined benefit pension scheme without it impacting on our ability to fulfil our core purpose of looking after thousands of special places on behalf of the nation forever, for everyone.”
It added: “The decision to make these proposals has not been easy and one which we have deliberated over for some time. However, we believe that the steps we are proposing to take will not only secure employees’ accrued benefits but also provide greater financial stability for the Trust in the long term.”
The scheme closed to new entrants in 2003 with 1,200 members of staff, 16 per cent of the charity’s permanent workforce, enrolled in it. If the proposals are adopted its members will be transferred to the charity’s defined contributions scheme.
Some 2,500 members of staff are signed up to the defined contributions scheme, which sees the charity match the contributions that individuals make between 4 per cent and 10 per cent.
The National Trust said: “We feel this represents a good pension scheme for a charity and would ensure greater parity of benefit across our whole workforce.”
Existing pensioners and deferred members of the defined benefit scheme are not affected by the proposals.
