UK - The number of final salary scheme closures in 2002 has already equalled last year's total, preliminary data from the NAPF's annual survey shows.
Chief executive Christine Farnish told the NAPF’s autumn policy conference that the government needed to take radical action to stem the tide of scheme closures.
She said that after having processed only half of the responses so far, the NAPF’s survey found that 46 final salary schemes have been closed to new members – the same as the total number of closures reported in 2001.
She added that despite efforts of the government to close the “savings gap”, NAPF research found it was growing, especially for those in occupational schemes.
It found employer contributions are on average higher in final salary schemes than in money purchase schemes, and that – as echoed by research from Mercer Human Resource Consulting – contributions into defined contribution schemes have fallen since last year.
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There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).