We all knew it would happen at some point. Vodafone UK has informed all the members of the Final Salary pension scheme that it will be closing the scheme in by the end of March 2010 and all employees will be moved to an improved defined contribution pension.

This wasnt a shock but what has come as a surprise is the poor level of compensation that is being offered by Vodafone. No one knows how the compensation figures were calculated and the offer is standard across all final salary scheme members.

Vodafone UK may not be having the best times in terms of winning in the market but the Group as a whole will post billions of pounds worth of profit. Staff understand the company needs to control its cost but at a time when pay has been frozen and many believe that this will continue through next year taking away a key benefit with further impact the already low morale.

Staff will need to pay more into the new pension scheme in order to get back what will in essence be a worse pension so thei pay in effect is going backwards. Not happy times at Vodafone thats for sure. Whether the company with change its offer is yet to be seen. Staff should find out the final terms of the new pension and compensation by the end of January.

One Response to “Vodafone Final Salary Pension Closure”

1. test my firewall hartford says:

   December 31, 2009 at 8:13 pm

   Well I’m going to have to read up some more but this is a pretty good strting point.