UK - UK insurance group Legal & General is consulting members of its £1.1bn (€1.37bn) defined benefit scheme and bidding to reduce contributions in the hope this will also lower its liabilities.

A spokesman for L&G said it is the firm has begun a 60-day consultation with its 1400 members.

"What we are proposing is we cap pensionable earnings for the purposes of the scheme, so if you are a member of the scheme and you get a pay rise of 4% in your hand, pensionable earnings will be capped at 2%," said the spokesman.

Details of the reforms are being explained to members in a series of presentations which will illustrate the retrospective liabilities.

The scheme is currently closed to new members and had a deficit of £66m at its 2006 valuation.

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