UK - Final salary pension schemes are dying because they have shifted from their original design, The Pensions Trust claims.
Chief executive Richard Stroud said: “It is ironic that the same actuaries who told trustees that they could and should enhance final salary benefits in the heady days of the 1990s, were now telling trustees they needed something completely different.”
Stroud added that career average revalued earnings schemes offered a “third way” for employers looking to stabilise costs and still retain a salary-related link for members.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.