UK - Employers are dumping newly-established defined contribution plans in favour of stakeholder and group personal pensions, industry leaders warn.
Lawyers and professional trustees say thousands of small and medium-sized firms have closed the DC plans they set up after axing final salary arrangements and switched to contract-based plans from insurers.
Stakeholder and SIPPs are far cheaper to run, involve a lot less government regulation and allow employers to escape mortality and governance risks.
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.