UK - Small to medium sized companies with DB schemes are more at risk of bankruptcy than larger companies it was claimed at JPMorgan Fleming's DC seminar.
The seminar on Monday followed on from the publication of JPMorgan’s DC Industry survey which revealed that 69% of companies that only run a DB scheme have not intention to change to DC in the next five years.
JP Morgan Fleming relationship manager, Julian Lyne, said: “While it looks good for firms to have DB schemes, a lot of these are held by the largest companies in the UK that can afford to maintain DB. New start ups shouldn’t even consider a DB scheme.”
Kim Gubler Consulting senior partner, Kim Gubler, added that: “A lot of employers are struggling, they can’t keep pace of their final salary schemes and their core business. A DC scheme can cut the cost to a more realistic and stable level for smaller businesses.”
The DC Industry Survey revealed that of companies making the switch to DC, 79% said the major motivation was cost control, while 14% said the move was made for risk control.
By Simon Meek
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.