UK - Two-thirds of companies are resisting the trend away from DB schemes, research from JPMorgan Fleming Asset Management.
The DC Industry Survey 2002 revealed that 69% of companies that only run a DB scheme have no intention to change to DC in the next five years.
But this level of commitment has waned since last year, when 75% of DB providers insisted they would not open a DC scheme.
JPMorgan Fleming Asset Management head of UK institutional investment Arno Kitts predicted a further decline in commitment to DB.
He said: “The shift from DB to DC provision is undeniable and we would expect to see the trend increasing significantly, particularly in the next 10 years.
The study shows 12% of companies plan to open a DC scheme in the next 12 months and a further 9% indicate they will make the move in the next five years. The remaining 10% are still undecided.
JPMorgan Fleming client relation manager Julian Lyne added that companies are still wary about making the shift away from DB.
He said that although firms were lured by the flexibility of DC schemes, the move did not always give a competitive advantage.
He added: “You can use DB packages as a market differentiator - a way to lure employees to your company.”
The survey results are based on 138 responses from the UK top 350 pension funds. These firms represent pension assets of around £213bn.
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