Who will follow rentokil?
Only one company in the FTSE 100, Rentokil Initial, has so far announced that it will be closing its final salary scheme to existing members, but many others are expected to follow over the next six years. This is the stark warning from actuarial firm Lane Clarke & Peacock, which believes dozens of FTSE 100 companies are set to close their final salary schemes between now and 2012 in an attempt to cut pension costs.The closure of such schemes – often referred to as ‘gold-plated’ because they guarantee a level of pension provision regardless of stock market performance – will force thousands of employees into private pension schemes. In the process, the risks associated with fluctuating asset values will pass from shareholders to staff. Lane Clark & Peacock made this dramatic prediction when it launched its latest review of pension deficits in August this year. Speaking at the time, partner Bob Scott said: ‘I think that by 2012, the majority of companies that offer defined benefit schem
