MEMBERS of brewer Scottish & Newcastle's final salary pension scheme will have to contribute money for the first time.
The FTSE 100 group will keep the scheme open to its 3,200 members but, from April 6, they will have to pay in six per cent of their salary. At present, members of the scheme make no contribution.
Staff who do not want to put any of their earnings towards a pension will instead be given the option of joining the company's career average salary scheme, under which contribution levels range from nothing to six per cent of salary.
The decision followed consultations with employee representatives.
The group closed its final salary scheme to new members in April 2003 when it set up the career average scheme.
Unlike a final salary scheme, under a career average scheme, the final payout is based on average earnings over an employee's career.
When the group's final salary scheme was last valued, in 2003, it had a £400m deficit. Since then, the company has paid in £200m.
S&N is the latest major company to announce changes to its final salary scheme in an attempt to reduce costs.
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