Siemens, the German electronics group, is changing its defined benefit fund to a defined contributions scheme. The move has been agreed with employee representatives and will come into effect in 12 months.

"At Siemens, there were 4.5 active employees for every pension recipient in 1975. By the end of 2002, the ratio was 1.2 to one. In response to this development Siemens, like many other major German companies, is reorganising its company pension scheme," the group says.