UK - Final salary schemes are unsuitable for a large number of firms and employees, PIFC Consulting claims.
The firm said employers should not be “overwhelmed” by moving from DB to DC and final salary schemes were not “as solid as people think”.
The consultancy said it was “relaxed” about giving firms advice on closing DB schemes in favour of a DC alternative.
Group managing director Nick Burns said: “The guarantees of a final salary scheme are not as solid as people like to think. We believe final salary arrangements are often unsuitable for a large number of employers and employees.”
PIFC has recently expanded its consultancy offerings to include benefit solutions such as pensions or risk benefits, human resource consulting and online solutions.
Burns added that although employers were nervous about union involvement and employee reaction, the transition of arrangements could be made less painful if there was adequate communication.
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