View more on these topics

87% of defined benefit pension schemes now closed, says ACA

Nearly 90 per cent of defined benefit pension schemes have closed, according to an Association of Consulting Actuaries survey.

The survey shows 87 per cent of defined benefit schemes in the sector are closed to new entrants, representing nine out of 10 schemes. One in five, 18 per cent, are now closed to future accrual.

Results show that nearly a quarter of the 309 firms surveyed, 24 per cent, are considering levelling down their pension benefit when auto-enrolment comes into force.

Fifteen per cent are considering closing their scheme altogether, including 41 per cent of smaller employers. Only 32 per cent of employers have budgeted for the costs of auto-enrolment.

The ACA says concerns over the affordability of auto-enrolment are a genuine threat to existing schemes of all types, with 59 per cent of employers set to review arrangements ahead of 2012.

Just 6 per cent of respondents say the Government’s stated policy of supporting quality pensions is working, down from 38 per cent two years ago. At the time of the survey, June to July last year, 91 per cent of schemes were in deficit.

ACA chairman Keith Barton says: “These are worrying times for all those looking to retire in the years ahead.

“Public policy seems to be locked into justifying ever heavier regulation and cost under the banner of protecting accrued benefits for generally older employees, but with scant regard for the future pension security of millions of younger private sector employees. There needs to be a more balanced approach where the rising numbers of under-pensioned in the private sector get a better deal with employers’ costs capped and with proportionate protection across all age groups.”

Recommended

Swip launches multi optimal fund

Scottish Widows Investment Partnership has launched its multi-manager optimal multi-asset fund in the UK retail market to be run by Mark Harries and Simon Wood.

1

Ignoring the obvious

The Charles River report to the Association of British Insurers in 2005 found little criticism of the commission system of remuneration.At about the same time as this report, I wrote to the FSA saying that if comm-ission and its effect were to be displayed on illustrations, why not also show the fee charges as an […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Oh dear nearly 90% of final salary schemes are now closed, how are the educated idiots that set the exams for us going to justify their fees for setting us “dinosaurs” JO4 and JO5 exams. i will watch with great interest how they can stretch out another JO pension exam for us that will be an absolute waste of real time come 1st January 2013.
    Roll on

  2. I think that should be the epitaph to Gordon Brown’s ministerial gravestone come the next election.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com