The Department for Work and Pensions (DWP) has published guidelines for employers considering changes to their defined benefit (DB) pension scheme.

The information note, which follows the Government's commitment to publicising risk sharing options that are available under current legislation, aims to help employers to look at a wider range of options for DB changes.

"If there is an appetite to share risks going forward, the current framework already enables risks to be shared in many ways," commented Angela Eagle, Pensions Minister. "Employers have asked for accessible information about the options. I hope this note will be helpful."

The note has been largely welcomed by the industry, and Brendan Barber, general secretary at the Trades Union Congress (TUC), said some employers believe there is a simple choice between final salary DB and defined contribution (DC) pension schemes, with no middle ground. "This useful guide shows there are a range of options both for those who want to improve a standard DC without going to full DB, and for those trying to ensure the sustainability of defined benefits."

Case studies from five employers are featured in the note, covering risk/cost sharing - cash balance/hybrid (Barclays Bank plc), career average (Morrisons), longevity adjustment factor (John Lewis), changing accrual rates and increasing the normal pension age (BT), and cost sharing/cost capping (Civil Service Pension Scheme).

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