FINAL SALARY PENSIONS TO MOVE TO LESS GENEROUS SCHEMES

[TrueBlueTerrier]

FINAL SALARY PENSIONS TO MOVE WORKERS TO LESS GENEROUS SCHEMES WITHIN 5 YEARS

http://www.express.co.uk/posts/view/142 ... in-5-years" onclick="window.open(this.href);return false;



A THIRD of final salary pensions which have already shut to new staff will move all workers to less generous schemes within five years.

Research shows that just 23 per cent of such schemes – where staff are guaranteed a portion of their pay when they retire – are still open to new members, down from 28 per cent a year ago.

According to the National Association of Pension Funds, the recession has taken its toll on companies offering gold-plated pensions.

They are switching their employees to defined contribution schemes with the value of their pension fund often dependant on the performance of the stock market.

The survey comes a day after Vodafone announced plans to close its final salary pension to existing members. Around 4,000 staff are affected.

Firms are finding their generous final salary pensions are too expensive to run.

Gold-plated local authority-run schemes are unaffected.

Eight in 10 companies say the Government can help pensions schemes by issuing more long-term and index-linked gilts to reduce deficits and liabilities in pension funds.

[Lincox]

These pension schemes are really deferred salary payments. Are these companies now going to increase salaries to take account of the real cut in earnings that these companies will now be providing. I think not.