06 January 2010
According to an Association of Consulting Actuaries (ACA) survey
87 per cent of defined benefit pension schemes have now closed to
new entrants. Last year around 74 per cent were closed to new
entrants. The survey also revealed that 18 per cent are now closed
to future accrual.
There were 309 firms surveyed and 24 per cent of these are
considering levelling down their pension benefit when
auto-enrolment comes into force. Another 15 per cent are
considering closing their scheme altogether.
Just 6 per cent of respondents said that the Government's stated
policy of supporting quality pensions is working. This was down
from 38 per cent two years ago. Also at the time of the survey,
June to July last year, 91 per cent of schemes were in deficit.
ACA chairman Keith Barton says: "These are worrying times for
all those looking to retire in the years ahead.
"Public policy seems to be locked into justifying ever heavier
regulation and cost under the banner of protecting accrued benefits
for generally older employees, but with scant regard for the future
pension security of millions of younger private sector employees.
There needs to be a more balanced approach where the rising numbers
of under-pensioned in the private sector get a better deal with
employers' costs capped and with proportionate protection across
all age groups."
