Children’s charity Barnardo’s has announced that it is proposing to close its career average staff pension, a decision that UNISON has described as “premature” and a “real betrayal” to staff.

Increasing liabilities have been cited as the main reason for the proposed closure of the Barnardo Staff Pension Scheme (BSPS). BSPS will be closed to future contributions from 31 March 2013. Current members will have their existing pension preserved however.

Barnardo’s director of finance Kevin Barnes said: “As the UK’s largest children’s charity we have a responsibility to be as prudent as possible in future-proofing our finances, and managing our pension deficit is vital to ensure that our priority remains providing services to those who need our help most.

“The continued unprecedented economic conditions have increased the volatility of the liabilities of all defined benefit pension schemes and therefore the scale of the potential risks that such schemes are being forced to manage.”

Barnes added that staff will be offered access to a DC pension scheme from April that is “considerably more generous” than the government requirements for auto-enrolment.

However, UNISON said the decision is a “bitter disappointment to staff who are only now being consulted after the event”. Speaking about the staff at the charity, the union’s national officer for the third sector Simon Watson argued: “They do not get big pay packets or bonuses, so their pension and saving for security in retirement means a lot to them and taking that away is a real betrayal. Barnardo’s should have consulted fully with UNISON and at least provided more detailed financial information. Management need to think again about their mission which must include caring for its staff in their retirement.”

Staff affected have been informed that the consultation period will run from now to 11 March.

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