Boots is Kicking its Employees
Saturday, February 20, 2010 10:17
Alliance Boots, backed by US buyout firm Kohlberg Kravis Roberts, become the latest in a string of FTSE 100 companies to cut down its final-salary schemes over the past year, following the movement of Barclays, BP, Whitbread, DSG International, WM Morrison and Trinity Mirror.
The gold-plated scheme of Boots has a surplus of £188m and the company said that the move had not been prompted by any financial turmoil. Though the retirement pot maintain its robust financial health, existing staff will be shifted on to a defined-contributions scheme that puts less financial burden on the company and places the risks of market fluctuations with the employee.
More than 15000 employees at Boots will lose their generous pension conditions after the company announced the closure of its final salary pension scheme.
However, the 75000 employees at Boots should still feel lucky to be in any kind of pension schemes, as several other private equity-owned businesses have already laid waste to long-standing retirement plans.
Related posts:
- Half of UK’s Final Salary Schemes to Close
In recent years, there has been an increasing trend for... - KKR’s Alliance with Boots
The steady recovery in the stock market over the past... - Wolverine Boots
Wolverine World Wide Inc. is based in Rockford, Michigan. It... - Alliance Boots Extends Skincare Deal
Alliance Boots entered into an unusual tie-up with the world’s... - Four Ways to Motivate Employees
In modern times, the competition between different organizations focus...
