More than one-fifth (22%) of respondents that offer a defined benefit [DB] pension plan will continue to offer it as a fully-functional scheme in the next two years, according to Employee Benefits/Capita Pensions Research 2013.
But 15% of respondents with a DB scheme plan to review their plan’s future and 8% have varying plans for their different legacy schemes.
The research, conducted among 370 HR and benefits managers, found that 6% of respondents have already decided to close their DB scheme to future accrual and 4% plan to close it to new entrants. A further 4% have decided to close their scheme to both future accrual and new entrants.
By comparison, in Employee Benefits’ 2008 Pension survey, 4% of respondents said they planned to close their DB scheme to new entrants and 2% planned to close it to future accrual. Also, 5% of employers planned to introduce a cash incentive to encourage staff to leave the scheme.
Read the full version of Employee Benefits/Capita Pensions Research 2013
