RS Components' risk-sharing plan saves defined-benefit pension scheme
To avoid closing its final-salary scheme, RS Components went to great lengths to get employee agreement for an innovative set of changes, including a mortality risk-sharing arrangement. The exercise saved the company from a potential doubling of its pension contributions.
On this page:
A mounting deficit problem
Benefit changes to
combat the problem
Mortality risk sharing
Gaining legal status
Reducing pension costs
Coordinated approach
Sixty-day consultation
Queries answered
Successful outcome
Box 1: The Electrocomponents Group pension scheme
Box 2: Life expectancy risk sharing - document extract
Our research.