UK - Employers will increasingly choose to wind-up DB schemes rather than closing them to new members unless the government creates effective reform, delegates at the NAPF's autumn conference heard.
Conservative work and pensions spokesman David Willetts said the “pensions crisis” would escalate unless the government cut the red tape employers faced when administering schemes.
He said: “The next danger is that schemes will close to existing members as well. It has already happened in a few cases.
“But unless ministers act urgently I predict there will be many more schemes closing altogether. That really would destroy the retirement hopes of millions of people.”
Willetts said the government should act upon NAPF proposals to merge the second state pension into the basic state pension system at a level generous enough to move people off means tested benefits.
He said this would achieve a “far simpler” benefits system which did not penalise people for saving.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.
An independent expert panel will be commissioned to review how the £6.1bn funding deficit figure for the Universities Superannuation Scheme (USS) was reached, Universities UK (UUK) has announced.