Most defined benefit pensions now closed

NINE out of ten defined benefit pensions are now closed to new members as employers continue to move away from the high cost schemes, research today revealed.

Some 18 per cent of the schemes, which include final-salary pensions, have also been closed to future accruals from existing members – double the level seen four years ago, according to the Association of Consulting Actuaries.

The group warned that the situation was likely to continue to deteriorate, as a third of companies were currently reviewing their defined benefit schemes, usually with a view to either closing them to future accruals or moving from a final-salary to a career average scheme.