Pension Scheme Benchmark 2008

1. Catalysts for change

The make-up of work-place provision in the UK has changed radically since the introduction of personal pensions nearly two decades ago. Then those employees who were entitled to membership of a work-based pension scheme were overwhelmingly offered access to a final salary scheme. Now less than one third of such schemes are open to new entrants. This section looks at the factors driving these changes.

2. Pension schemes on offer

The research included in this publication took place between August and December 2007. It covers 74 separate pension schemes, sections or arrangements, ranging from schemes providing benefits on a final salary basis to employer sponsored stakeholder schemes. These pension provisions are sponsored by 40 different employers.

Developing pension provision

This section looks at the broader development of work-based pensions in the light of the new pensions tax regime introduced on 6 April 2006, the bedding down of the measures introduced in the Pensions Act 2004, the future effect on private pension provision of indexing the State basic pension in line with earnings, and the possible effects of the introduction of personal accounts. Also considered are existing trends in schemes' contracting out status and administration arrangements.

4. Benchmarking contributions

This chapter analyses the contribution structures of defined benefit and defined contribution schemes in order to show how much employers and employees are currently paying towards pensions.

5. Benchmarking benefits

This chapter analyses the benefit provision of the schemes profiled in chapter 6. As well as the benefits provided to members at normal retirement age we also consider the treatment of pensions in the event of early or late retirement and discuss provision for dependants when a scheme member dies.

6. Directory of pension schemes

Chapter 6 includes profiles of 74 separate schemes, sections or arrangements as sponsored by 40 different employers. These cover both defined benefit schemes and defined contribution arrangements.