£5.5m pension fund hole

Careers advice company brought down by pension fund problem.

A shortfall of £5.5m in its pension scheme has forced a career advice company into liquidation.

Careers Essex provides advice to thousands of school pupils across the county and was due to be taken over by a Government-funded support service.

Uncertainty over pension fund liability had delayed the move and management were forced to call in liquidators.

Talks are taking place to discuss the plight of Careers Essex which has 230 staff.

The firm offered advice to 13 to 19-year-old students in schools, colleges and careers centres across Essex.

Difficulties over transfer

It was due to be transferred in April to Connexions, the Government-funded support service for young people, but problems with the pension fund made the transfer more difficult than expected.

Talks were underway on Wednesday between the public sector union, Unison, and the chief executive of Connexions to try and resolve the pension issue.

A spokesman for Essex County Council has told BBC Online that he is confident the careers service in schools will not be affected.

Most jobs safe

"Most of the 230 jobs will be safe although 10 were due to be lost anyway.

"For the 230 employees involved the biggest uncertainty is over their pension.

"The current staff pension scheme needs £5.5m pounds to meet its liabilities.

"It's that problem which lead to the company being placed in the hands of liquidators," he said.