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Ford Vows to Continue to Meet Significant UK DB Scheme Costs

18 June 2012 (PLANSPONSOREurope.com) - Ford has vowed to continue meeting the “significant costs” of its UK Defined Benefit Scheme as UK workers go on strike over the planned closure of the scheme to new recruits.

The Unite union announced late last week that Ford staff will take 24-hour strike action from 6.00am on Monday (18 June) until 6.00am on Tuesday (19 June).

In a statement Ford said it has sought talks with the union over the financial challenges of its defined benefit pension funds, which it says, are significantly in deficit.

“Around 80% of all private sector firms have now closed their defined benefit pension funds to new hires.  The company has categorically confirmed that it has no plans to close its pension funds to existing members and that the funds remain open to existing members.

“The company remains of the view that its existing final salary pension provisions stand in comparison with the best pension arrangements in the UK private sector, and the company continues to meet the significant cost of providing the promised level of pension benefits set out in the Rules of the Fund - the results of the latest actuarial valuation, effective March 2010, showed the combined Ford Pension Funds to have a significant deficit.”

PLANSPONSOREurope Staff
editors@plansponsoreurope.com





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