Now Arcadia mulls pension pull-out

FASHION retailer Arcadia is the latest company to review its final salary pension scheme. The group, which employs 28,000 staff, will decide in the next few months whether to scrap the scheme for new staff.

Some 4,500 employees are members. Arcadia, Britain's second-largest clothing retailer, owns High Street brands Top Shop, Burton, Dorothy Perkins and Evans. 'Like other companies, we are reviewing our pension policy, but no decision has been taken,' Arcadia said.

The fund has been in surplus for several years, so Arcadia has not had to pay anything in. But it will soon need to restart contributions. Staff already pay in 4% of salary.

Clothing giant M&S will close its generous final salary scheme to new members from 1 April. Whitbread, Sainsbury, BT and ICI have already done so. Retailer Iceland and accountant Ernst & Young have gone one step further. They are forcing staff out of their salary schemes into riskier stock market-linked arrangements.

The great pensions crisis