Fewer than four out of 10 final salary pension schemes are now open to new
members and nearly half of these are contemplating closure.
This is the finding of a study by the Association of Consulting Actuaries,
which advises almost 3,000 final salary schemes with 6.8 million members in
total.
The ACA also finds final salary schemes are not being replaced by money
purchase arrangements attracting equivalent contribution levels.
Gordon Pollock, ACA chairman, said: "There seems to be some confusion
among policy makers about just what is happening due to a lack of hard figures.
There is evidence from published government surveys that the number of
employees being offered any sort of occupational pension – final salary or
money purchase – has also declined quite markedly."
Pollock said the ACA is concerned the Government is underestimating the
changes to future pensioner incomes and that there has been an inadequate
policy response. He is encouraged that some employers are considering other
types of defined benefit arrangements following reviews of their pension
schemes.
