UK - Nearly 40% of small to medium-sized final salary schemes are in danger of being closed due to funding fears and regulatory uncertainty, SEI claims.
Research commissioned by the multi-manager found that lack of government action and growing liabilities were a far bigger problem for schemes with assets between £10m-£250m than concerns over the Myners’ review.
The study found that 38 of the 100 companies surveyed were considering closing their DB schemes. But this figure rose to 50% for companies with schemes worth between £10m and £50m.
SEI managing director Patrick Disney said: “This research should serve as a wake-up call to the government, who could be accused of ‘fiddling while Rome burns’.
“While the Myners review was successful in calling into question the present system of decision-making for pension funds it is now time for the government to tackle the pensions issue in its totality and address its systemic problems.”
*Around 40% of firms plan to close their final salary schemes to new employers this year, the Chartered Institute of Personnel and Development says.
But few employers are axing pensions contributions altogether.
The body found that of the 200 companies surveyed, 95% still pay into pension schemes for existing employees and 87% were contributing to new employees’ pensions.
An analysis of IGC annual reports finds some lacking in information on value for money, costs and charges, and investment performance. James Phillips explores the findings
A new cost transparency solution is being developed for pension schemes by a financial services technology firm.
Supermarket giant Asda's plans to reform its pensions have been decried as "unfair, unreasonable and unnecessary" as the workers' union began talks with the employer.
The Pensions Administration Standards Association (PASA) has launched a checklist to help trustees with the rectification process for guaranteed minimum pensions (GMP).