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CII plans to shut its DB plan due to 8m deficit

The Chartered Insurance Institute is set to close its final-salary pension scheme to existing members after calculating its scheme has an 8m deficit.

The move follows FTSE 100 firm Rentokil closing its final-salary scheme to existing members to curb its pension liabilities. The Co-operative is also switching its final-salary scheme to an average-salary system.

The CII is proposing to move to a defined-contribution scheme offering up to 20 per cent salaries. It closed its defined-benefit scheme to new members in 2001.

The organisation, which offers qualifications to ret- ail pension practitioners, would not comment on whether a rumoured pending merger with another professional body is one of the reasons why the proposal has been put forward.

Standard Life head of pensions policy John Lawson says: “Obviously, the CII is capping its liabilities, which seems like a sensible thing to do. Rentokil is closing its scheme to existing members and this will be just the start of a theme for the rest of the year.”

CII public relations manager Steve Radford: “This is still in consultation. A paper has been put to the council and as it is still being reviewed, there are no further comments to be made at this time.”

Norwest Consultants director Harry Katz says: “This does not surprise me. I am afraid this is going to be the fate to come for many this year.”

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