Regional publisher Johnston Press has announced plans to close its final salary pension scheme to the build-up of future benefits.

The company says the proposal will help cut its pensions deficit which has grown from £74m, to £146m since 2002.

The final salary scheme was closed to new employees several years ago and now includes only 15pc of JP’s total workforce.

A letter to staff from chief executive John Fry today said that existing benefits in the scheme would be protected, but from 1 July, future benefits would only be available from joining the group’s money purchase scheme.

Mr Fry commented: “Our main aim is to protect the benefits that are already built up in the final salary section of the Plan.

“To do this we need to ensure that the shortfall is controlled and reduced and that we provide a pension arrangement that is competitive and sustainable for the company.”

The proposal is subject to a formal two-month consultation period with staff affected which will commence on Monday.

Johnston Press is the latest of a number of media companies to adopt measures to limit the costs associated with final salary pensions.

Last November, Trinity Mirror announced similar proposals to close its final salary scheme to the future build-up of benefits.

Fellow publishers DMGT and Archant have left their schemes open to future benefits but capped them in line with inflation.

Comments

m smith (15/01/2010 11:36:26)
perhaps if johnson press did not take as many payment holidays in the 70/80s there would not be a shortfall in the final salery scheme.

Dave (15/01/2010 13:28:22)
They ‘aim’ to protect existing benefits…?

JP Worker (15/01/2010 14:18:42)
Remember folks it’s only a consultation, nothing has been decided! JP wants to hear your views – just like it did with the incredibly clever subbing hubs they proposed…implemented…and then, um, scrapped.

JP worker 2 (18/01/2010 10:38:51)
what do you mean, scrapped? I thought they were still full-steam ahead with them?