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Latest NewsPay & benefitsPensions

Two-thirds of final salary pension schemes in private sector now closed to new employees

by Mike Berry 22 Feb 2007
by Mike Berry 22 Feb 2007

More than two-thirds of final salary pension schemes, offered by companies in the private sector, are now closed to new employees, a survey suggests.

A survey by the National Association of Pension Funds (NAPF), which has 1,300 members, found that 67% of private sector final salary schemes are now closed to new members.

But the majority of final salary schemes offered by the public sector are still open to new joiners.

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The annual NAPF survey found that one in 10 private sector final salary schemes closed to new members in 2006.

The survey also found that many companies are giving extra cash to schemes. One in five respondents said they are considering allowing pension schemes to tap into company profits to prevent deficits growing.

Mike Berry

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