Defined Contribution Schemes Fall Off UK Pension's Radar
More than four out of five private-sector pension schemes have no plans to introduce defined contribution arrangements, according to JPMorgan’s Fourth Annual Defined Contribution Industry Survey. The survey found that 84 per cent of private-sector defined benefit schemes have no plans to offer defined contribution while almost 50 per cent of private-sector defined benefit schemes were closed to new members or not available to everyone. In addition, it noted that only 1 in 10 pension schemes believe the Government’s Green Paper on Pensions will encourage more retirement saving. However, fifty per cent of those surveyed in 2003 now offer staff a DC scheme, up from 39 per cent in 2002. A further 16 per cent of DB schemes in the private sector intend to introduce a DC scheme in the next five years. Based on an analysis of those private sector organisations that took part in both the 2002 and 2003 surveys, 12 per cent have introduced a DC scheme in the last year compared with a 10 per cent shift in the previous year’s survey.