UK - The move to close defined benefit provision is gaining momentum, according to Towers Perrin.
The investment and actuarial firm found that two thirds of employers installing new defined contribution plans cite controlling costs as a major factor.
Partner Mark Duke said: “The bandwagon is rolling. Employers say they are responding to a very strong market trend.”
But the survey of 180 companies found that administrative failure posed a high risk to DC schemes.
The survey also found 85% of trustees felt they needed to enhance their knowledge of investment issues.
Duke added: “Running a DC plan is challenging. We have evidence that there is lots of work still to be done. Plan members need more guidance. Many employers and trustees need a better understanding of the issues.”
By Alistair Graham
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.