|
24-Jun-08 11:15 [Pensions]
DB schemes 'increasingly closing down' Defined benefit (DB) pension schemes are being closed by increasing numbers of UK companies, according to new research.
The 2008 PricewaterhouseCoopers Pensions Survey tracks the opinions of 86 pension decision makers, finding a division between companies moving away from DB provision and the importance of pensions in attracting and keeping the staff that organisations need to succeed.
Some 16 per cent of respondents have closed their DB schemes with a further 11 per cent expecting to do so in the future.
"That companies continue to close their defined benefit schemes to new employees is no surprise, but the trend towards ceasing to provide future accrual of benefits to existing employees shows just how far UK companies are prepared to go to address their exposures to defined benefit pension provision," commented Marc Hommel, partner at PricewaterhouseCoopers.
An increase in the importance of pension schemes in motivating and retaining employees was noted, with 88 per cent of respondents stating that it was equally or more important than three years ago.
It also emerged that 35 per cent of companies are looking for a complete or partial buyout of their pension liabilities, which represents an increase of eight percentage points from last summer.
Of all the companies surveyed, 16 per cent have pension liabilities that exceed the value of the company.
It was recently reported by Reuters that Legal & General estimates the pensions buyout insurance market could reach £10 billion this year.
Please click here for more UK employee pension news
The Department for Work and Pensions (DWP) has highlighted the fact that there are 600,000 job vacancies across the country, adding that it is to aid people in their attempts to return to work.
Find out more>
An increasing number of people are doing away with pension and insurance contributions as the credit crunch looms large, it has been understood.
Find out more>
The National Association of Pension Funds (NAPF) has listed four areas where UK pensions regulation is "out of step" with other international practices.
Find out more>
|
