WEST Midland workers with global giant TRW face smaller pension payouts which could see their retirement hopes devastated, it was revealed today.
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WEST Midland workers with global giant TRW face smaller pension payouts which could see their retirement hopes devastated, it was revealed today.
TRW Ltd, a subsidiary of TRW Automotive, said it was seeking to close its UK pension scheme to future benefits for more than 2,700 current members.
The move marks another hammer blow to workers across the TRW Ltd group less than six months after the parent group announced 180 job losses at its sites in Perry Barr, Mere Green and Solihull.
The TRW scheme, which includes the former Lucas Pension Scheme, has a total membership of around 56,500 individuals, with over 2,700 employee members.
But unions locked in talks over the proposal are bitterly opposed to the closure plan which could see some workers face potential halving of their anticipated retirement funds.
Employees who joined a UK business of Lucas, LucasVarity or TRW prior to April 2009 are part of final salary schemes, which have now closed to new employees as part of measures to manage pension risks.
Secretary of the TRW Pension Scheme’s Trustee Board Roy Middleton said: “We are in the process of the regular actuarial review of the scheme.
“The advice we received from both our actuarial and legal advisers is the Trustee needs to take immediate action to protect the accrued benefits of our scheme members.
“In simple terms, our proposal is to close the scheme to future benefit accruals in order to focus on ensuring that we can honour commitments related to all contributions received and benefits accrued to date.
“The financial crisis of the last nine months has had a significant impact on the scheme’s assets and liabilities by changing its ongoing funding position.”
