7,600 staff consulted over move to money purchase scheme

Aviva will enter into negotiations with 7,600 staff to shut its final salary pension scheme.

The insurer will bring their pensions in line with its other 14,000 staff, who are members of the money purchase sections of the pension scheme. Existing contributions will be protected.

Chief executive Mark Hodges said: “It’s crucial that whatever we do is equitable and sustainable for all UK employees, and the current pension arrangements are neither. Our proposals are in keeping with the continuing trend for companies to move to money purchase schemes – these schemes are now the norm, rather than the exception.”