Employers still committed to final salary pensions

Most
employers are still committed to final salary pension schemes, according to a
report.

Three-quarters
of the 240 organisations surveyed by insurance broker Jardine Lloyd Thompson
are still running final salary pension schemes.

The
poll also finds that six out of 10 organisations have increased their pension
scheme contribution rate, while a quarter have increased staff contribution
rates or are considering the move.

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"Considering
market conditions, we might have expected a headlong rush away from the
traditional final salary schemes. But instead of the panic encouraged by the
headline-seeking, short-termist press, there are careful and sober tactical
adjustments to contributions levels and investment strategy," said Tim
Evans, chief actuarial officer at Jardine Lloyd Thompson.

By Paul Nelson