Most final salary pension schemes will change in the next five years

Only four in 10 private sector companies with final salary schemes believe they will keep their pension arrangements unchanged for the next five years.

A survey of 310 employers by the National Association of Pension Funds (NAPF) found that 22% expect to modify their schemes, 15% expect new employees to be given defined contribution pensions, and 22% were unable to answer.

The survey also found that the continuing shift towards defined contribution pensions was putting human resources professionals at the heart of company pension plans.

Human Resource directors sit as trustees on 25% of occupational pension schemes, second only to finance directors, who sit on 30%.

NAPF chief executive Joanne Segars said: “With both the gradual shift from salary-related to money purchase pensions and a competitive labour market, the HR community has a growing and important role to play in good workplace pension provision.

“With the growth of money purchase pensions, employees will often look to their employers, very often their HR manager or director, for help and information on pension issues.”