While some US law firms have long ignored mounting pension liabilities, relying on annual profits to pay retirees, Shearman & Sterling has become the latest firm to alter its pensions system to limit future payouts.
Shearman’s 200-strong partnership has voted to remove defined-benefit pensions for future partners, a plan that typically hands retirees an annual payment based on a percentage of their final ‘salary’.
The change was introduced in the middle of October and affects any new partner, whether a promotion or a lateral hire.
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