I've been out mixing with reward experts at two of the City's big four accountants over the past week.
Both highlighted the position that many employers find themselves in, staring at a growing cost to the defined benefit (DB) pension scheme with little alternative other than to close it to new AND existing staff.
Sophie Black, director of reward and performance at Ernst and Young, said for businesses, now was the time to make changes to pension terms and conditions.
"Many staff are too concerned with potentially losing their jobs, which can play into the hands of employers looking to reduce costs," she said.
She was echoed by Jon Terry, head of reward at PricewaterhouseCoopers, who added that there was big news expected in the coming months about several large FTSE companies closing their DB schemes.
"It's not the death knell for DB schemes, however, but the disparity between public and private sector pensions will continue for the foreseeable future," he said. "The impact this will have on DB pensions as a whole will be big, and likely not positive for any party on either side of the divide."
Half of DB pensions are expected to close to new joiners this year, but both experts hinted at a number of DB pensions closing to existing staff as well because of the recession.
Also expected are total reward rethinks as companies look to reduce the number of flexible benefits on offer in place of more specialised (and minimum-cost) benefits.
Both highlighted the position that many employers find themselves in, staring at a growing cost to the defined benefit (DB) pension scheme with little alternative other than to close it to new AND existing staff.
Sophie Black, director of reward and performance at Ernst and Young, said for businesses, now was the time to make changes to pension terms and conditions.
"Many staff are too concerned with potentially losing their jobs, which can play into the hands of employers looking to reduce costs," she said.
She was echoed by Jon Terry, head of reward at PricewaterhouseCoopers, who added that there was big news expected in the coming months about several large FTSE companies closing their DB schemes.
"It's not the death knell for DB schemes, however, but the disparity between public and private sector pensions will continue for the foreseeable future," he said. "The impact this will have on DB pensions as a whole will be big, and likely not positive for any party on either side of the divide."
Half of DB pensions are expected to close to new joiners this year, but both experts hinted at a number of DB pensions closing to existing staff as well because of the recession.
Also expected are total reward rethinks as companies look to reduce the number of flexible benefits on offer in place of more specialised (and minimum-cost) benefits.
