Number of employees in final salary schemes continues to fall

The number of employees in final salary schemes in the private sector continued to drop last year, according to data from the Office for National Statistics (ONS).

The Occupational Pension Schemes Annual Report 2008 reveals that the number of workers in private-sector run final salary schemes has fallen to a record low of 2.6 million, down from 2.7m in 2007 and 3m the year before.

However, the statistics also showed that private sector final salary schemes continue to have higher regular contribution rates that defined contribution (DC) schemes. 

The average total contribution rate (member and employer) for open defined benefit schemes in 2008 was 19.7% compared with an average of 9% for open DC schemes.

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