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Businesses 'will withdraw pension schemes'
22/02/2007
UK companies are entering into the second stage of winding down their final salary pension programmes, an expert has claimed.
According to a spokesman for the Pensions Advisory Service, most firms are currently in the process of closing off defined benefit schemes to new staff as the business world moves towards adopting pension reform plans.
The nonprofit body's technical director Des Hamilton noted that this is the first stage of the transference process and asserted that the impending second phase will see companies close the funds to existing employees and finally end them altogether.
Mr Hamilton commented: "They obviously have to wait and the scheme must be fully funded until they get there.
"We are getting close to the end of the first stage and we are entering into the second stage."
The expert was speaking in the wake of a new survey from the National Association of Pension Funds which revealed that more than two-thirds (67 per cent) of businesses have closed their defined benefit schemes to new employers.
According to a spokesman for the Pensions Advisory Service, most firms are currently in the process of closing off defined benefit schemes to new staff as the business world moves towards adopting pension reform plans.
The nonprofit body's technical director Des Hamilton noted that this is the first stage of the transference process and asserted that the impending second phase will see companies close the funds to existing employees and finally end them altogether.
Mr Hamilton commented: "They obviously have to wait and the scheme must be fully funded until they get there.
"We are getting close to the end of the first stage and we are entering into the second stage."
The expert was speaking in the wake of a new survey from the National Association of Pension Funds which revealed that more than two-thirds (67 per cent) of businesses have closed their defined benefit schemes to new employers.