PwC survey reveals surge in firms halting future DB accrual for existing employees

The consultant’s third annual pensions survey – which polled pension decision makers in 86 UK organisations – also found 11pc expected to close schemes to future accrual in the future.

It said this was "significant" as all of the respondents’ schemes were still providing accrual to existing members one year ago – and only 3pc had closed schemes to future accrual for existing employers six months ago.

And it said just 20pc of respondents’ DB pension schemes were now open to new members – compared with 33pc last year.

PricewaterhouseCoopers partner Marc Hommel said: "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."

The PwC survey also found that 35pc of firms were looking to buyout some or all their pension liabilities – an eight percentage point increase from last year.

Hommel said: "We’re seeing increasing concern from companies about the volatility of their funding position and the associated impact on their balance sheet and profit and loss – this is particularly true of companies where the scheme liabilities are comparable to the value of the organisation.

"News of recently announced buyout transactions, together with growing opportunities to gain economically justifiable terms, is making pension buyouts an increasingly palatable option for companies with defined benefit pension schemes."