Sugar firm Tate & Lyle is the latest firm which has joined the growing number of firms to shut their pension schemes. The decision will affect the firm's current workforce of 400 employees. The scheme has already been shut for the new joiners since April 2002.
"With a view to containing our pension costs and reducing balance sheet volatility, we have commenced consultation with employees who are active members of the UK Group Pension Scheme on the closure of that scheme to future accrual from April 2011", the firm said.
Other firms like Pirelli, Dairy Crest, Costain, Morrisons, Barclays, Fujitsu, the Financial Services Authority and IBM have also been pursuing the same policy this past year. Fujitsu, a computer firm has declared three days partly over plans to close its final-salary scheme to existing employees.
Tate & Lyle reported that with its first-half profits as forecasted, they have been able to pay back more than expected by reducing its borrowings by 20pc to £987 million between March and September. Tate's pre-tax profit dropped to £50m from £121 million a year earlier.
Finance director of Tate, Tim Lodge said the focus of the firm would remain on controlling the costs and paying back debt.