Clean break: final-salary pensions are a luxury of the past for most private-sector employers. Tim Ludlow FCMA, former finance director of Miele GB, explains how he scrapped its scheme without alienating the workforce.

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Clean break: final-salary pensions are a luxury of the past for most private-sector employers. Tim Ludlow FCMA, former finance director of Miele GB, explains how he scrapped its scheme without alienating the workforce.

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The problem is not uncommon: your firm's defined-benefit pension scheme is a key recruitment and retention tool, but it has a deficit that's increasing at an alarming rate. How do you take this financial risk out of the business and remain able to motivate existing staff and attract new talent?

I faced this situation in 2006 when I was finance director at the UK operation of Miele, a well-established German business in the ...

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