Standard Life is to close its defined benefit staff pension scheme to future accrual from April 2016 to tackle the rising costs of providing guaranteed benefits to employees.
The scheme has been closed to new entrants since 2004. Over half of Standard Life employees are members of the DB scheme, which has a funding surplus and 3,000 active members.
They will be given the option of joining the defined contribution scheme, which is being revamped from April 2016.
Standard Life chief operations officer Sandy Begbie says: “The cost of providing pensions on a defined benefit basis is rising sharply so we’re taking action now before the cost grows even further.”