Following a review of pension and retirement benefit
arrangements, Trinity Mirror plc today announces that entry into its three final
salary pension schemes will be closed to new employees from 1st
January 2003.
There will be no changes to existing pension schemes or the
benefits for current members.
The decision to close the schemes to new employees was taken for
a number of reasons, including increasing life expectancy and the volatility of
the stock markets.
Existing staff who are eligible for a final salary scheme but
have not yet entered one have until 28th February 2003 to do
so.
The review concluded that an occupational defined contribution
plan offers the best alternative to a final salary scheme. The plan, which
should be in place by July 2003, will allow members to choose a level of
contribution that will be matched by the company. It also provides health
insurance for members along with a lump sum and a pension to dependants if an
employee dies in service.
Trinity Mirror plc's contributions and additional costs in
providing the plan are estimated at up to 12 per cent of salary.
The company's pension schemes are being funded in accordance
with schedules of contributions agreed by the trustees, the company and the
appropriate scheme actuary, all of which meet the statutory requirements of the
Pensions Act 1995.
