Shell closes final salary pension scheme to new members

Shell has closed the last chapter on final salary pension schemes with the announcement that it plans to close its scheme to new members; the last such scheme in the current FTSE 100 that was open to new staff.

Shell currently employs 6,500 people in the UK and has around 30,000 UK pensioners.

Shell plans to develop a defined contribution (DC) pension plan for new hires to reflect market trends in the UK, which is expected to take effect in the first quarter of 2013.

In a statement, Shell said: “The plan will be designed to ensure the reward package in the UK for new hires remains strongly competitive.

“Current active members, deferred members and pensioners of the Shell Contributory Pension Fund (SCPF) and the Shell Overseas Contributory Pension Fund (SOCPF) are not impacted by this proposal.

“Active members of the SCPF and SOCPF will continue to accrue pension benefits within those plans on the same basis as now.

“The company has confirmed its commitment to funding the SCPF and SOCPF remains unchanged. Further details of the proposed pension plan for new hires will be made available as the design is progressed.”

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