UK - The £12.1bn (€15bn) Shell Contributory Pension Fund is revising the terms of its defined benefit scheme from next year which requires new members to retire later and receive a lower aggregate of their salary.
Royal Dutch Shell officials said a letter has been sent to staff stating all new members will still have access to the defined benefit but terms are being altered for new members from 1 January, 2008.
From that date, the age at which members from retire will rise from 60 to 65 while the calculation used to ascertain how new members receive in contributions will be cut from 1/54th to 1/60th.
The new terms will not be applied existing DB members' benefits, according to a spokeswoman.
The UK Shell Contributory Pension Fund has been well-funded for some time so the company has been on a contribution holiday since October 2007. (See earlier IPE story: Shell to take contributions holiday)
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