MCC bucks national trend with new final salary pension scheme

Date released: 25 June 2004

MCC has bucked the national trend by introducing a new, final salary-based staff pension scheme.

MCC's new policy, which has just come into effect, adopts a twin-track approach:

• staff earning up to £25,000 can now join a new, wholly final salary pension scheme; and

• staff earning over £25,000 can now join a 'hybrid' scheme, consisting of both final salary and money purchase elements.

The changes involve a significant increase in the annual pension contributions made by MCC; however, there have been no increases in the pension contributions required from the Club's staff.

The new, improved arrangements have been introduced to:

• enhance the Club's ability to recruit and retain the right personnel;

• encourage more staff to start making proper provision for their retirement; and

• recognise the recent achievements of MCC's staff, and the Club's growing workload.

To help achieve the same objectives, MCC has also introduced a new performance-based rewards system - which involves, where appropriate, the payment of annual performance-related staff bonuses - and appointed its first Personnel & Training Manager, Grant Jenkins, who has played a leading role in the pension and broader rewards initiatives.

Commenting on the new scheme, MCC's Secretary & Chief Executive, Roger Knight (right), said: "The MCC Committee has long been keen to recognise the many achievements of our staff over recent years, and to provide them with greater security and certainty when they approach retirement. I believe that our new pension arrangements - which have involved a great deal of preparation, discussion and research - represent an excellent way of achieving these goals. I am sure they will encourage a higher proportion of our employees to start saving for the future. In addition, they will further enhance our ability to attract and retain the staff we need to fulfil our ambitious plans for the future."

These plans include MCC's £8.2 million Pavilion refurbishment project, the development of the country's first portable pitches, and increases in the Club's year-round income - through initiatives such as the On-line Lord's Shop, the Lord's Partner scheme and MCC's exclusive distribution deal with Albion headgear.

The new pension arrangements will be particularly beneficial for two categories of staff - those earning less than £25,000 and those who have joined MCC since 1999, when the Club's previous final salary scheme was closed to new entrants.

In recent years, a large number of employers have closed their final salary pension schemes to new staff; indeed, the proportion of employers allowing such staff to join these schemes is now below 20 per cent.