NAPF survey reveals further DB closures

The trade body’s annual pensions survey showed 28pc of DB schemes, with a total of more than two million members, remained open to new entrants – compared to 31pc in 2007 and 33pc in 2006.

And the survey revealed 21pc of the remaining DB schemes open to new members were considering switching to defined contribution and 10pc were looking at how to reduce costs or risks.

It also revealed 5pc of pension schemes had obtained a full buyout quote and 10pc had obtained a partial quote.

The NAPF said schemes were spending on average 74pc more on levies, 20pc more on fund management and 19pc more on advisers’ fees.

NAPF chief executive Joanne Segars said: "Government, regulators and standard setters must take action to ensure the regulatory framework encourages good quality pension provision and continued employer commitment.

"This must include ensuring the impact of personal accounts and auto-enrolment in 2012 does not place unnecessary and unwelcome additional administrative costs on schemes and that the government sticks to its commitment to deliver a lighter touch regulatory regime for workplace pensions."

The NAPF’s survey showed the DC pensions landscape was also changing.

It found average contributions stood at 11pc – with 7pc from the employer, more than twice the statutory employer minimum from 2012.

Employee contribution increased from 4pc in 2007 to 4.3pc this year.

The survey received responses from 327 NAPF fund members, though not all responded to every question.

Nearly all respondents operate defined benefit schemes. Most also operate defined contribution schemes. 502 schemes were covered by the survey.