(Updates, recasts) UK - Brewin Dolphin, a UK stockbrokers and private client portfolio manager, has effectively closed its defined benefit pension fund to new members and those under 55, just as its finance director has reached that milestone.

Finance director Robin Bayford joined the board of Brewin Dolphin in 1990, aged 41. In Brewin’s preliminary report, John Hall, chief executive (aged 64), said: “A pensions crisis has built up in the UK and we, like others, have taken action on our own staff Retirement Benefit Scheme, which from April 2004 was closed to new members and also to employees under the age of 55.”

At the latest available information from 2000, none of Brewin’s other directors or chairman were under 55. The four trustees led by chairman Derek McIntosh that made the decision, after advice from scheme actuaries and administrators Punter Southall, all work for Brewin Dolphin.

The scheme, however, was only for employees earning less than £30,000 and Hall said by effectively closing the DB scheme it had opened up the money purchase scheme that senior staff had used to all its staff. "There was definitely no ulterior motive," he added.

The National Association of Pension Funds, the UK industry’s trade body, said it had not heard of a member closing a scheme to those below a certain age before. The NAPF spokesman said: "It would be interesting to see the rationale behind the move. We certainly have never seen such a move and we would encourage members with concerns to contact Brewin Dolphin.

“Under the pension rules there is nothing to stop such a change, provided the trustees are happy."

The Brewin Dolphin pension scheme’s assets increased to £29m from £25m during the financial year but the deficit remained at £9m as the actuaries increased the assumed rate of inflation, although it still planned to pay this off over the next 10 years.

In the results, Brewin Dolphin said its total income was £121m, up from £101m in 2003, with profits before tax and goodwill amortisation at £16.1m from £4.4m.

The group also said it was not planning to add to its £2.5m exceptional provision made in 2002 to cover costs and claims arising from its involvement in the sale of split capital investment trusts, many of which went bust in the market downturn and has faced a regulatory investigation into alleged misleading marketing material and/or collusion to support prices.

But Brewin said any exceptional ex gratia contribution it might agree was likely to be material for its profits next year. The regulator has been trying to agree fines and compensation worth about £275m for 21 firms involved in splits with a resolution expected before Christmas.