Fewer than half of the UK’s largest companies retain final salary schemes that are open to new members, compared with nearly two-thirds a year ago, according to new research.
A study of the latest FTSE 350 annual reports, by Mercer Human Resource Consulting found that many companies now offer a combination of both final salary and money purchase pensions.
While a quarter have not yet opened some form of money purchase scheme, this compares to almost half last year.
Many employers have sought to cut costs by closing their final salary schemes to new entrants, however, “a striking development in recent months is the number of employers re-committing to final salary schemes, but rebalancing the costs” said Tim Keogh, European Partner at Mercer Human Resource Consulting.
He continued: “Many companies are changing the cost structure of their schemes, such as increasing employee contributions or adjusting the rate at which benefits can be built up.”
