UK - Less than 15% of final salary schemes will be open to new members within two years, the Association of Consulting Actuaries warns.
And it is urging the government to take “speedy action” to halt the shift away from defined benefit provision.
The ACA said its survey of 336 firms found that 72% had already either closed their final salary schemes to new members or future accruals.
The ACA claimed that 29% of employers which still offer DB schemes to new members had reviewed their provision in the past six months while a further 17% had closed their schemes to new members.
The ACA warned that if the current rate of change continued, less than 15% of schemes would be open to new entrants within two years.
ACA chairman Gordon Pollock said: “Our latest report on occupational pensions makes disturbing reading.
“Occupational pension provision is on the decline – the figures show that far fewer employees are being offered occupational pensions than a decade ago and only 1% of employees have taken up stakeholder plans.
“The flight away from final salary arrangements has accelerated disturbingly over the last few months.”
*Manufacturing employers want the government to set out a clear timetable for implementing pension reforms.
The Engineering Employers’ Federation said the “continued absence” of a timetable – particularly for the replacement of the minimum funding requirement – was undermining confidence in the government’s commitment to reform.
EEF deputy director of employment policy David Yeandle said: “We are now at a critical stage for the future of UK pension arrangements and, in particular, occupational pension schemes.
“Employers remain willing to play their part in delivering a positive outcome, in partnership with the government, employees and their representatives.
“However, we now urgently need government action, not more words, to reform the current framework.”
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