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Companies should
aid their workers through the consequences of the changes taking
place in workplace pension provision according to PricewaterhouseCoopers
(PwC).
Having found further proof - from the firm’s third pensions
survey - that a growing number of UK companies are closing schemes
to future accrual as well as looking to buyout their pension schemes,
PWC has argued that there is a worrying disconnection between the
exodus from DB provision and the importance of pensions in employee
recruitment and retention.
According to the survey, 16 per cent of participants have now closed
their DB scheme to future accrual for existing employees, and a
further 11 per cent expect to do so in the future. In addition,
the closure of DB schemes to new employees has continued to gather
pace, with just 20 per cent of respondents’ DB Pension schemes
open to new members, compared with one in three last year.
The findings also show that 35 per cent of companies are looking
to buyout some or all their pension liabilities, reflecting an eight
percentage increase from summer 2007. 19 per cent are looking to
do so in the next five years, and the data also suggests that larger
companies are more likely to take this kind of action, with 43 per
cent considering buyout in future.
Marc Hommel, partner at PwC, said that there has been a mass transfer
of risk from employers to employees in relation to retirement savings.
“It is time for companies to step up and help their employees
navigate the consequences of this sea change.”
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Pensions Age June 2008
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