Final Salary Schemes
According to the Money section of The Sunday Telegraph ( May 19 ), Ernst & Young recently tried to scrap its FSS for existing members as well as new joiners. Fortunately the staff hired good legal council and managed to get E & Y ' to rethink plans in the light of objections from existing members '. In the article Alastair Meeks of Pinsent Curtis Biddle said: ' Many pension scheme conversions are taking place without adequate consideration of the legal restrictions imposed by the terms of the specific scheme. I expect more challenges of this type to emerge.' Also James Mann of Fox Williams ( they hired two firms of solicitors! )
said: ' Employment law places constraints on an employers' ability to change unilaterally key benefits on which employees have placed reliance. It is wrong to imagine that employers can simply steamroller changes through.'
That may be the case - but it doesn't stop the bean counters from trying. My advice would be to get organised now, as it seems highly likely companies such as BA will try it on sooner or later. First they try to buy you out, then force you out.