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Big rise in firms shutting FS schemes

The number of companies cutting costs by closing final-salary schemes to new members nearly doubled in the last year, according to the National Association of Pension Funds&#39 annual report.

This year, out of the 970 firms surveyed, 84 companies closed their final-salary schemes compared with only 46 companies in 2001.

The survey identifies that such a move makes an average 6 per cent saving as the average contribution by private sector employers into money-purchase schemes is 6 per cent of salary compared with 12 per cent for final-salary schemes.

A third of schemes narrowed their eligibility criteria in 2002 compared with one in 10 in 2001, with 95 per cent of schemes saying that providing an occupational pension takes up more company resources than it did five years ago.

NAPF chief executive Christine Farnish says: “This survey highlights the pressures on employers with workplace pension schemes and underlines the importance of next week&#39s Pensions Green Paper. There is a real danger that as the cost of provision rises, the level of provision will fall. The atmosphere in which companies provide pensions for their employees is getting thinner.”

•Terry Faulkner is to become the new chairman of the NAPF next May when present chairman Peter Thompson steps down. Faulkner is currently chairman of the NAPF benefits council, a director of the NAPF and a trustee of the NAPF pension scheme. He is also group pensions and benefits manager of Rexam.


IFA E&H and iimia to merge

The parent company of investment manager iimia and the partners of pension advice specialist Eveleigh & Huckle have signed a heads of agreement to merge.Subject to due diligence and regulatory approval, the merged company will offer independent investment management holistic financial planning, with around £150m of funds under management.It will trade under the iimia brand […]

Royal London jobs go in multi-tied switch

Royal London Group is to cut 690 jobs, including 200 at its Scottish Life subsidiary, following a fundamental review of its business, which will see its direct salesforce culled to make way for a second-tier multi-tied force.Removing duplication in areas such as IT, human resources and admin will see Scottish Life lose almost one-fifth of […]

Davies to quit

FSA chairman and chief executive Howard Davies is to quit after five years in the duo role.Davies will leave the regulator in September 2003 to take up the position of director at the London School of Economics on October 1.Davies 51, was previously deputy governor of the Bank of England and had been tipped as […]

Henderson offers free Isa transfers to tech fund

Henderson Global Investors is seeking to administer the final blow to moribund technology funds by offering investors free Isa transfers into its global technology fund until January 31.In a move designed to help establish the fund as the biggest in its sector, Henderson is waiving charges to investors moving Isas through Cofunds and Skandia and […]

Harris Associates' view on the UK’s vote to leave the EU

By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]


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