UK – Pension trustee and investment firm Law Debenture has cut benefits for members of its own defined benefit pension scheme – despite £2.5m (€3.6m) in extra contributions.

“In recent years, the deficit of our defined benefit pension scheme has increased as a result, mainly, of members living longer and lower bond yields,” the company said.

“During the year the decision was taken to keep the scheme open but lower the group's exposure by reducing future benefits and introducing employee contributions.”

The group paid a special contribution of £885,000 in 2005 and a further £1.6m this year.

Law Debenture provides pension and commercial trustee, corporate and treasury management services. Earlier this month, one of its directors, Mark Ashworth, was named as the new president of the Society of Pension Consultants.

Gross revenue in 2005 rose by 15.6% to £35.3m while profit attributable to shareholders was £11.8m – a rise of 17.4%, driven by a 13.2% improvement in the investment trust and a 23.3% improvement in trustee and related services.

The net asset value total return in 2005 was 28.5% compared to a total return of 22.0% for the FTSE Actuaries All-share Index.
It said: “Our pension trustee business has seen growth from new and existing relationships and expects the Pensions Act 2004 to continue to provide opportunities.”