Pension fund association to reveal rising cost of final salary schemes

The National Association of Pension Funds (NAPF) will reveal new evidence of the soaring costs facing employers running final salary schemes this week.

Employers face an estimated £360bn bill for meeting all liabilities under current regulations.

At this weekÕs NAPF conference in London, Alan Rubenstein, the managing director of European pensions at Morgan Stanley, will highlight the extent to which employers are concerned about the costs of pensions and the risks associated with continuing to offer them.

Employers are believed to be facing a near doubling in contributions to meet new regulations associated with salary-related schemes.

The NAPFÕs annual survey of pension funds, to be published next week, will show that the rate of scheme closures has slowed from last yearÕs high of 26 per cent.

Christine Farnish, chief executive of the NAPF, told The Telegraph: “Our detailed figures will reveal the true extent of the burden for employers, which is horrendous. There are many responsible employers out there, desperately attempting to manage these difficulties, but the burden of costs is going to make this increasingly impossible for them to do.”

Comments are closed.