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Bovis 'must scrap' final salary pension scheme
20 June, 2008Bovis has been told to cut its final pension scheme by its Australian parent company Lend Lease.
Bovis has been told to cut its final pension scheme by its Australian parent company Lend Lease.
The announcement comes as Lend Lease's UK and European businesses reported a 40 per cent loss this year, and the industry as a whole is preparing to tighten its belt in the face of the rising fuel costs and more stringent targets set by governments hoping for a greener industry.
Reported on Building.co.uk, a Bovis spokesperson said: "Like many businesses, Lend Lease believes these changes are necessary because the costs of a final salary scheme are no longer sustainable.
"Making these changes will create more certainty for the organisation in the future," he added.
The announcements have attracted anger though from employees, with one claiming that "it's deeply disappointing for people to be told this now, particularly if they've stayed with the company for a large number of years."
There are currently 900 people signed up to the final salary pension scheme that stand to be affected.
Instead of the final salary scheme the company is discussing moving employees onto an average salary scheme, with additional bonuses for some individuals, and talks will continue until the end of the month.
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