UK - Closing defined benefit schemes to new employees does not resolve all of a firm's pension problems, delegates at a Lane, Clark & Peacock seminar declared.
The consultant said 80% of trustees, pension managers, finance directors and HR directors taking part realised closing a pension scheme to new members did not alleviate the financial burden on the employer.
But LCP partner Francis Fernandes added: “As soon as a DB pension scheme closes, the clock starts ticking to winding up the scheme and buying out benefits with an insurance company – perhaps not for many years – but the end-point of the scheme has appeared on the horizon.”
He also warned that the number of schemes closing to all members could increase following the government’s recent proposals which, he said, put more risk on employers.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.