Thursday, 29 April 2010

The Corporate Pension Script

CONWY, UNITED KINGDOM - NOVEMBER 06:  In this ...Image by Getty Images via Daylife

How to manipulate your employees and their pension.

Step 1. Complain about the cost of the final salary scheme.

Step 2. Close the final salary scheme to new entrants.  Do not under any circumstances admit that this act will lead to Step 4!

Step 3. Introduce a money purchase scheme for new starters to reduce corporate cost.

Step 4. Complain about the continuing cost of the existing final salary scheme.

Step 5. Highlight the differential of the final salary scheme to the money purchase scheme employees. Show how we have 2 groups of employees. Divide and Conquer!

Step 6. Ensure the aggrieved voice of the money purchase scheme employees is heard loudly.

Step 7. Suggest that in the interest of employee harmony the final salary scheme benefits are reduced to the legal minimum.

Result!
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