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.
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.