Tractor firm closes final salary pension scheme

Tractor manufacturer CNH UK is closing its final salary pension scheme for entrants and 'new hires' as part of an enabling agreement concluded in December.

The Fiat-owned company, basedin Basildon in Essex, is setting up a money purchase scheme based on a 5% company contribution.

The agreement included a new two-year pay deal with a 2.1% general increase from 24 November and 3% or average RPI (November 2002 to October 2003) plus 0.5% (which ever is greater) in the second year.

The agreement also provided for a 12-month allowance protection scheme aimed at long-term employees affected by health problems. Minimum holiday entitlement increased to 25 days (the additional day to be taken on a Friday) and there was a 5% award payable to up to 70% of employees in the top grade (Grade 5) in Product Engineering and Quality.