Defined Benefit  

Capita chief to be challenged on pension closure

Capita chief to be challenged on pension closure

Unite, the union representing staff at Capita, will challenge the company's bosses on changes to the pensions of staff at the annual shareholders meeting today (13 June).

Unite will ask the chief executive and the board: “How can the board justify a highly profitable company such as Capita undermining the morale and loyalty of hard working staff by proposing to remove their defined benefit pension?

"Is this not risking further industrial unrest and reputational damage following the pay dispute last year?”

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Business management outsourcing company Capita last week informed its workforce of changes to the defined benefit pension arrangement.

Capita’s own figures show that staff could lose as much as £8,000 per year in deferred pay.

A Capita spokesperson said: “A small percentage (approximately 3 per cent) of our workforce are members of a defined benefit pension scheme. We are in the minority of companies still offering this type of scheme.

"We are consulting with these employees about a proposed move to our defined contribution pension plan. These proposed changes will not impact their existing pension benefits. As this consultation has recently started, it is not appropriate for us to comment further at this point.”

stephanie.hawthorne@ft.com