CSC shuts final salary pension scheme
Another one bites the dust
CSC UK has followed rivals IBM and Fujitsu Services in shutting down its final salary pension scheme, claiming it would jeopardise the future of the business to continue the benefit.
In an company-wide email, operations chief Kevin Brown said the scheme will close on 1 April next year. The move is the latest in a series of cost-cutting measures at the UK arm of the global outsourcing giant that has included compulsory redundancies and a pay freeze.
"I am sure you have seen the recent press coverage on the actions of some of our competitors in respect of their final salary pension schemes and therefore it may not be a surprise to you that CSC has also been reviewing its long term pension commitments," Brown said.
"The pension scheme liabilities have a substantial impact on both CSC's competitiveness and profitability in the market place, and maintaining the final salary pension schemes will materially impact the financial viability of our UK business."
The decision is followed by a 90-day "consultation" with CSC's UK employee forum. The final salary scheme, which guarantees a set pension on retirement, will be replaced with a money purchase scheme, which does not.
CSC UK employs 7,500, although not all will be affected by the closure as it was already running a money purchase scheme.
In July IBM UK announced it will close its final salary scheme, citing very similar problems with "affordability and long-term sustainability". Fujitsu Services beat both IBM and CSC to the punch in May.
The union Unite has heavily criticised the decisions, and Fujitsu Services members are currently balloting on strike action.
Industrial action at CSC UK could affect several vital public services. Its staff run parts of Transport for London, the NHS National Programme for IT, the National Identity Scheme and the National Grid.
CSC's spokeswoman was not available to comment. ®