Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • 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

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • 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

Latest News

Existing final salary plan members could lose out

by Personnel Today 25 Feb 2003
by Personnel Today 25 Feb 2003

Employers will be tempted to close final salary pension schemes to existing
members as well as new members to curb the increasing costs of provision.

This is the conclusion of a study by Mercer Human Resource Consulting, which
finds that costs for a typical final salary scheme, which has been closed to
new members, are expected to rise by 25 per cent over the next five years.

This contrasts with an increase of 30 per cent for final salary schemes
which remain open to all staff.

"Employers still need to take some hard decisions on cutting pension
costs," said Peter Bowers, European partner at Mercer.

"The majority of companies have already closed their final salary
schemes to new members, but this was the easy step. The next big issue is how
to deal with the current membership."

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.

Mercer predicts there will be a new wave of pension reviews, where final
salary schemes are either adapted to reduce employer risks or closed to
existing members.

"Closing a scheme to new entrants is a relatively easy decision to
take. But employers are fooling themselves if they think this alone will solve
the problem of rising pension costs," said Bowers. "Unless companies
have a particularly high staff turnover, such a decision will not significantly
reduce their long-term pension liabilities."

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
£27m fund to close local government’s skills gap
next post
Employers attack ambiguous plan for union learning reps

You may also like

EHRC submits new code of practice to government

5 Sep 2025

Lloyds Banking Group to target underperformers for job...

5 Sep 2025

How to manage workplace investigations effectively

5 Sep 2025

Manager who called bosses ‘dickheads’ was unfairly dismissed

5 Sep 2025

Jaguar Land Rover staff sent home after cyber...

5 Sep 2025

Agency crackdown won’t cure NHS staffing crisis alone

5 Sep 2025

‘Terrible’ Employment Rights Bill returns to Commons

4 Sep 2025

Connect to Work scheme to benefit 15 areas...

4 Sep 2025

Sandie Peggie launches fresh legal action against NHS...

3 Sep 2025

How to stop flying blind with workforce planning

3 Sep 2025

  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...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 Live
Employee Benefits
Forum for Expatriate Management
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
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • 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