View more on these topics

Survey shows public-private DB divide

More than twice as many public sector workers have access to final-salary pension schemes than people in the private sector, according to research from the Chartered Institute of Personnel and Development.

In 2004, 84 per cent of public sector workers had access to DB schemes compared with 38 per cent in the private sector. Twenty-seven per cent of private sector employees were offered stakeholder schemes while the figure is 13 per cent in the public sector.

The CIPD says hybrid schemes have failed to make a significant impact on employers and comprise just 2 per cent of private sector schemes and zero in the public sector.

The pace of change of company pension schemes appears to be slowing. Around 14 per cent of employers are considering changing their pension scheme offering this year compared with 15 per cent last year and 20 per cent in 2003.

Most respondents say the main changes they are considering include increasing employer and employee contribution rates and amending accrual rates to make DB schemes more affordable.

Recommended

Product Matters

The launch of HSBC’s new deposit account is the latest of some recent headline-grabbing regular savings accounts following on the heels of Halifax & Abbey.

Bankhall runs roadshows

Bankhall is running a series of roadshows for its Investment Strategies Limited members to ease them through the procedure of becoming directly authorised.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment