UK - A new survey has revealed that a further 113 companies are considering junking their final salary schemes.
The study by the Confederation of British Industry (CBI) and Mercer Human Resource Consulting also showed that 225 out of the 940 firms polled have already shut their final salary provision.
According to the Trades Union Congress (TUC), the survey confirmed that the UK is in the grip of a pension crisis for which corporate Britain “should be hanging its head in shame”.
TUC general secretary John Monks, said: “Of course we praise the companies who are sticking with their pensions promise, but the news that more than a hundred further companies are actively considering closing their final salary schemes is further evidence of Britain’s growing pensions crisis.
“What is worse is that the vast majority of these companies appear to be keeping their staff in the dark about their plans, as unions are not aware of that many companies planning to close their schemes.”
The TUC has been building up to this week’s annual conference in Blackpool, where pensions top the agenda. Speaking on the eve of the congress, Monks set the scene with a warning of impending poverty for millions of workers.
“Many people at work today will be poorer when they retire than today’s pensioners. Many more will rely on means tested benefits that depend on the generosity of the government of the day. Progress for the retired has come to a full stop, and for many is now going backwards,” said Monks.
Monks also explained how the responsibility for pensions was being loaded onto individuals, and how access to occupational schemes had fallen - a problem compounded by plans to reduce the state pension by 20%. He also repeated earlier arguments for compulsion.
“Let me tell you we are all militants when it comes to defending and advancing pension rights. Even decent employers have betrayed decades of trust as they give in to city pressure to scrap quality pensions,” added Monks.
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