From IDS Pensions Bulletin 209, October 2007

Company news

• BAA to close final salary scheme to new members
• Social housing scheme shows funding improvements
• G4S converts to GPP provision

Regulatory round-up

• Regulator issues revised clearance guidance

Engineering firms continue to move away from defined benefits

The eighth survey of Pay and conditions in engineering conducted by IDS shows that the trend away from final salary schemes has persisted this year. As employers continue to seek ways of minimising risk while still providing a pension for staff, the popularity of defined contribution products has continued to grow. Meanwhile, the introduction of age discrimination legislation has caused many schemes to revise their terms and conditions.

Can private pensions build on State pension changes?

The ACA's 2007 Pension trends survey found that the majority of employers felt that the government policy in promoting occupational schemes was not working. It also found that although defined benefit scheme continue to be closed to new members, the deficits in these schemes are being addressed.

Comment

John W Hawkins, Principal of the Financial Strategy Group at Mercer, looks at the impact of the PPF’s levy consultation document on UK schemes and their sponsors in the event that the far-reaching changes it proposes are accepted.