Samantha McClary
Almost one-fifth of CB Richard Ellis’s 1,400-strong UK workforce has been told of a decision to close two final salary pension schemes operated by businesses acquired in 1998 and 1999.
More than 250 CBRE staff formerly employed by CB Hillier Parker and St Quintin were notified in January that their final salary pension schemes were to be closed, subject to a 60-day consultation.
The scheme, which was closed to new members several years ago, benefits several senior executives.
One said: “The members of the final salary pension scheme are some of the most loyal to the company and are responsible for driving recent growth. This is a kick in the teeth for CBRE’s employees, who have spent much of their careers with the company, which claimed it would look after its staff.”
A spokesman for CBRE confirmed the plans: “We will cease future accruals for the two schemes, which affect 18% of our UK staff. They will now join the general CBRE scheme, which will still exist but future payments will be made through the CBRE scheme.”
One disgruntled employee said: “Usually firms claim poor trading as a reason to close schemes. With profits expected to be in excess of £50m, it is hard to see why it would disenfranchise its loyal workforce.
“When the merger took place, employees were advised that their pension was safe. In a rising investment market, it’s difficult to see how the company can justify this reversal in policy in such a short time.”
Another said they were confused by the plans and were unsure how CBRE expected people’s pensions not to be negatively affected.
CBRE’s chief operating officer, Martin Lubieniecki, has been holding meetings with affected staff all this week. The formal decision of whether to close the scheme is expected next month.
l CBRE’s public sector consultancy executive director Brian Raggett has left the group for an unrelated reason after more than 25 years to join Strutt & Parker’s planning and development team. His departure came as the firm launched a search for a head of regeneration. The new position forms part of CBRE’s plans to expand its public sector team.
