Only one in five engineering firms still offer final salary pension schemes to new staff, according to new research.
Pay and benefits specialist, Incomes Data Services, found that 20% still offered defined benefit schemes, while 80% offered purely defined contribution schemes.
Those offering final salary schemes often incorporated them in ‘hybrid schemes’, where staff can switch to the scheme after a certain amount of time at the company.
The research consistently showed that companies complained of “the burden on company schemes and urged the government to simplify matters”.
In a separate development, 5,500 British Gas engineers are to be balloted in the run up to Christmas over the company’s intention to close its final salary pension scheme to new starters from next year, the GMB union announced today.
An unofficial consultative ballot has shown that the workforce is against the company’s plans, and there is a wish to take action to protect their new colleagues’ pensions rights, the GMB said.