A new study has found that while many UK firms are closing their final salary pension schemes to new starters, senior executives are continuing to enjoy defined benefit funds.
Origen, a financial advisory firm, has conducted a survey that found that over the past four years, there has been just a 5% fall in the number of UK final salary schemes open to senior executives. In the same period, numerous such schemes have been closed to more junior staff.
While Origen’s study also found that the average employer contribution to defined contribution schemes was just 7% of salary (much lower than typrical final salary scheme), the researchers did note a trend for rising levels of contributions.
However the research also highlights concerns that employers could take the introduction of the UK’s national pensions savings scheme (NPSS) as a cue to lower contributions to the NPSS minimum of 3%.