UK - There is a growing trend for employers to close final salary pension schemes to new members, with only a third still being open, according to Watson Wyatt.
A survey carried out by the firm revealed that employees with final salary pensions are being asked to pay more and work longer for the privilege of remaining in the scheme.
In spite of this, though, the research showed that the average 5.2% of salary member contribution still leaves employees with an excellent pension deal.
Some companies are also seeking to close their final salary schemes to existing members. Although this is very rare, senior consultant Kathryn Armistead said the results showed support for this choice.
“Our survey reveals that many employers would consider this option if the costs, risks and regulatory burden continue to increase,” she said, adding that the competitors’ moves were also a factor in the employers’ ultimate decision.
By Angele Spiteri Paris
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