Coventry Building Society closes final salary pension scheme

Coventry Building Society is the latest in a series of businesses that have closed their final salary-based pension scheme to all staff.



The society says the scheme represents a “significant risk now and in the future” to its finances.

The change affects 400 staff who were working for the mutual before December 2001 when the final salary-based scheme was shut to new members.

Pensions were provided based on a combination of final salary and the number of years worked.

But once the scheme is shut early next year, employees will pay into a defined contribution pension arrangement, with the final pension based on the fund’s investment performance.