One arm of the Royal Dutch Shell oil group will take a holiday from their pension contributions scheme, following a valuation that shows them heavily in surplus. However, employees of Shell UK will continue to make pensions contributions as usual.
The move follows a decision by the company to invest more heavily in bonds, slashing their investment in equities . This financial change is apparently proving successful.
Contribution holidays for companies are fairly rare, but if a surplus is recorded there is no reason why not. The chairman of Shell UK trustees, Stephen Hodge, reportedly commented: "We all recognise that financial market volatility is likely to continue and it is possible that at some time in the future company contributions will have to start again. For the moment though my feeling is that the fund is in a strong enough position to withstand most of the changes financial markets might bring to us."
Shell UK choose a pensions holiday
Pensions Quote Line
0845 108 0505
Shell UK choose a pensions holiday
Mon, 01 Oct 2007
Recommended links
Pensions enquiry formToday's top pensions results
Pensions and inheritance tax
Pensions and passing money on
Pension planning
Pension crisis on the horizon for the young
All time pensions low
| pensions news |
|---|
| Warning on pension annuities - Thu, 22 Jul 2010 |
| Government reforms pension annuities - Tue, 20 Jul 2010 |
| Pension holders set to benefit from energy rebate scheme - Tue, 13 Jul 2010 |
| More News |
Pensions Newsletter
Monthly pensions news, provider info & more.
Transferring a Pension
Learn more about pension transfers and enquire about transferring your pension.
SIPPs
Read up on Self Invested Personal Pensions and take control of your pension fund.