first_img Comments are closed. RAC wins plaudits over pension plansOn 14 Oct 2003 in Personnel Today Related posts:No related photos. Motor breakdown and insurance company RAC has won a ‘pension scheme of theyear’ award just weeks after a review of its final salary offering. While other businesses are closing final salary schemes to new employees ina bid to save money, RAC retained the benefit and even extended it to employeesaged under 25. The company has restructured its scheme and has taken steps to significantlyreduce its current deficit. It increased company contributions, and asked members to increase theircontributions to protect the future of the scheme. Forty-five per cent ofemployees in the scheme agreed to raise their contributions to keep theirfuture pension unchanged. David Dugan, RAC group pensions manager, said: “Our final salary schemeis an important part of the way we attract and retain high-calibre colleagues. “We have taken the opportunity this year to drive major changes in theway we fund and communicate our pension commitments. We are confident thechanges will protect the long-term future of our scheme for the benefit of allour members.” Currently, 60 per cent of RAC’s 6,500-strong workforce are members of thefinal salary scheme. Previous Article Next Articlelast_img

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