Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Auto-enrolmentLatest NewsEconomics, government & businessDepartment for Work and PensionsPay & benefits

Employers continue to close defined benefit pensions to new members

by Greg Pitcher 8 Oct 2008
by Greg Pitcher 8 Oct 2008

One in five employers offering a defined benefit pension is considering changing to a defined contribution scheme, according to a comprehensive study.

The 34th National Association of Pension Funds (NAPF) Annual Survey, which polled more than 500 pension schemes, found that 21% of defined benefit schemes could soon be closed to new members.

Just 28% of defined benefit schemes, such as those dependent on length of service and final salary, remain open to new members. This is down from 31% last year and 70% in 2002.

Employers are being forced to switch to defined contribution schemes – the value of which depends on the amount paid into them – due to increased life expectancies, rising pension management costs and the economic conditions.

Average total contributions to defined contribution schemes stood at 11% in 2008, with 7% coming from the employer.







Current market conditions are inevitably having an impact on group personal pension schemes, money purchase schemes and employees’ own personal pension schemes. In this clip pensions specialist Anthea Whitton, a partner at Pinsent Masons, points out that although times are difficult, especially for employees approaching retirement, they do have options.

When the government’s personal accounts system comes into force in 2012, employers will have to put 3% of an employee’s salary into a pension scheme unless the employee opts out. One in five schemes polled by NAPF said they would level down to 3% from that date.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

NAPF chief executive Joanne Segars said: “There is still much outside pressure on pension schemes. Government, regulators and standard setters must take action to ensure the regulatory framework encourages good quality pension provision and continued employer commitment.

“This must include ensuring that the impact of personal accounts and auto-enrolment in 2012 does not place unnecessary and unwelcome additional administrative costs on schemes, and that the government sticks to its commitment to deliver a lighter touch regulatory regime for workplace pensions.”




Greg Pitcher

previous post
Rise in FTSE companies reporting on staff health
next post
Redundancy advice helpline sees sharp rise in calls

You may also like

Number of Neet women rises but figures fall...

23 May 2025

Bank holidays: six things employers need to know

23 May 2025

Unions ponder strike action after public sector pay...

23 May 2025

Personnel Today Awards 2025: Three weeks left to...

23 May 2025

Sighing in frustration at colleague was discriminatory, judge...

23 May 2025

Flexible working for teachers initiative extended

23 May 2025

Fire and rehire: the relocation question

22 May 2025

Public sector workers gain pay rises of up...

22 May 2025

Six ways to kickstart conversations about team stress...

22 May 2025

UK net migration slashed by half in one...

22 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+