UK - Alan Pickering's Simplification Report is a Canute-like attempt to stem the tide of defined benefit scheme closures, J. Sainsbury pension manager Geof Pearson claims.
Pearson, writing in a newsletter to scheme members, said that there had been a massive change in the perception of the business risk of running final salary schemes.
“There is a season for all things, and now is the season for money-purchase plans. Anyone trying to hold back the tide will have the same success as King Canute’s courtiers in 1028.
“Even if all the added burdens of recent years were made into a huge bonfire; even if Gordon Brown returned the £5bn a year he took from pension schemes in 1997, then few employers would wish to go back to final salary provision for new entrants.”
J. Sainsbury closed its DB scheme to new employees in January, offering stakeholder instead.
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