Goodyear Dunlop to Consult Over ‘Defined Contribution’ Pension Scheme
Goodyear Dunlop Tyres UK Limited is to consult with pension trustees, trade unions and employee representatives over the introduction of a new Defined Contribution (DC) Pension scheme. According to a company statement, the proposed scheme would replace both the company’s ‘Hybrid Scheme’ (combined Defined Benefit final salary and Defined Contribution) and ‘New Hire’ DC scheme. Approximately 850 employees are in the Hybrid scheme and 70 in the ‘New Hire’ scheme.
The consultation will be on the proposed replacement of the current schemes with a new enhanced defined contribution programme. Those who are currently paying into the Defined Benefit (DB) scheme will have their accrued benefits deferred, and the company are proposing the introduction of a new DC scheme for future service to add to the members’ existing benefits.
“We are consulting on this change for several key reasons. We want to provide our employees with a valuable, sustainable alternative pension plan that is an important and attractive element in our range of market-competitive benefits. We need to remove risk in the future pension funding to help us deliver future investment and growth for the company, continuing our turnaround from loss to profitability” said Mark Brickhill, managing director, adding: “All employees will be invited to participate in a proposed new defined contribution plan from 1st January 2010, and the company will continue to contribute to the new plan. The changes do not affect the 13,221 existing pensioners and current deferred members.”