Half of FTSE 100 directors in final salary schemes

A massive disparity between the pensions awarded to boardroom directors and shop floor workers has been revealed in a new survey of FTSE 100 directors’ final salary schemes.

Incomes Data Services (IDS) said about 46 per cent of FTSE 100 directors are still accruing final salary benefits in schemes that typically pay two-thirds of final salary as a retirement income. The average pension pot for a director is worth around £2.8m, which could buy a pension annuity worth more than £170,000.

The finding is bound to anger workers, many of whom must save in cheaper schemes that pay only a fraction of their final pay cheque.  Steve Tatton, editor of IDS's Executive Compensation Review, said: "While pension provision for board directors have remained generous, much of the workforce over the last few years have been going through a process of having the value of the payments into their scheme reduced."

Read a full report at the Guardian 

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