AXA PLANS TO MOVE UK STAFF TO MONEY PURCHASE PENSION SCHEME

The UK arm of France-based insurer Axa has told staff that it plans to move 2,300 employees to a money purchase pension scheme, although existing members of the final salary scheme would retain their accrued benefits to date. Axa closed its final salary scheme to new members in 2003, but since then existing employees have continued to benefit from the old scheme. Axa said that "we have worked hard to maintain our defined benefit pension scheme over the past few years and have introduced a number of changes to try to keep the scheme sustainable", before adding that, "like many other companies before us, we are now proposing that the scheme be closed pending a further 60 days of consultation". Axa added that the move would permit it to harmonize pension arrangements "in a fairer way across our employee base". Trade union Unite said that it would not rule out industrial action, with national officer Dominic Hook saying that "the decision by Axa is unacceptable and industrial action will be among the options being discussed with members if Axa refuses to reconsider its proposals".