KPMG's attempt to get its pension scheme recognised as a defined contribution scheme, rather than a defined benefit scheme, has been turned down by the House of Lords ' leaving its 550 partners to plug a 60 million deficit.
The firm was taken to court by the scheme's trustees five years ago after it said it did not have to make good the deficit because under a defined contribution scheme individual pensioners bear the investment risk. Despite losing in the High Court and the Court of Appeal, KPMG pressed on to the law lords.
Had KPMG won, it was expected that many other companies would follow suit and try to change their schemes to offload their pensions liabilities. As it is, KPMG has ten years to clear the 88 million deficit.
The company has already put aside 28 million, leaving the partner...