Partner Article

Pensions report predicts sweeping change

CLOSURES of defined benefits pension schemes are set to surge, affecting thousands of UK workers, according to PwC research published today.

The survey of 179 major employers, including 34 with more than 10,000 employees, and 38 of the FTSE 100, reveals that only 6% of companies expect to retain defined benefits pension schemes in their current form.

• • The number of companies that have shut defined benefit schemes to existing employees has more than doubled since last year’s survey, from 14% to 32%.
  • A further 30% of employers intend to close defined benefit schemes to existing staff (this figure was just 17% last year).

Adrian Simpson, North East pensions director, PricewaterhouseCoopers LLP, said: “Employers are sounding a repetitive death knell for defined benefit pensions. Numerous factors, including the size and volatility of funding costs, and also concerns about the inequality of pensions provision within an employer’s workforce, are accelerating their demise. Companies recognise the value to their businesses and people of providing workplace pensions but not at the risk of jeopardising the business as a whole.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .