Defined benefit schemes maintained

The BECTU broadcasting union managed to retain a defined benefit pension scheme at Crown Castle International by negotiating the introduction of a new average salary arrangement.

The company first proposed to closed the existing final-salary scheme at the end of last year but after an initial meeting with the union the threat was withdrawn and discussions started on new arrangements that would reduce the pension scheme's deficit.

The union won backing from members for a proposal that would protect accrued final-salary benefits and maintain them in line with retail prices while future service would be under a new average-salary scheme.

Over 95% of members backed the change that protected survivors' and death-in-service benefits and maintained the guarantee of a defined-benefit scheme in place of the defined contribution arrangement that BECTU negotiators had feared would be pushed through by the company.

Meanwhile, high-street retailer Woolworth has maintained its commitment to its final-salary pension scheme although changes will mean higher contributions for employees and a later retirement age for new starters.

New employees will only be able to join the scheme after a year's service and will have a normal pension age of 65 rather than 60.

Existing employees will see their contribution rate rise to 7% if they want to maintain the current 1/60th accrual rate. They can move to a 1/80th rate with a contribution of 5%. Woolworth's contribution remains at 13.5% of salary.