UK - The number of FTSE 250 companies providing final salary benefits to a large number of employees has fallen to just 15, Pension Capital Strategies says.
The firm said only 144 companies out of the FTSE 250 have any DB pension scheme at all, with 86 still providing "more than a handful" of current employees with DB benefits.
Of these 86 firms, only 15 - or 6% - are still offering DB benefits to "a significant number of employees". These companies are defined as those incurring ongoing DB service costs that are greater than 5% of total payroll.
PCS managing director Charles Cowling said: "Despite an increase in confidence in equities over the past 12 months - with improved performance resulting in better funding positions - we are firmly of the view that the next two years will see the death of the overwhelming majority of further provision in private sector final salary pension schemes."
He added: "More than ever before, pension liabilities are impacting decisions in the boardroom.
"Faced with a challenging business cycle, it is not surprising that companies are reacting by closing down their final salary pension schemes."
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