FTSE 350 final salary schemes 'will cease' by 2027

Cost pressures to blame

clock • 2 min read

No FTSE 350 companies will retain a final salary pension scheme open to accrual by 2027, analysis by Hymans Robertson finds.

The cost pressures associated with running these defined benefit (DB) schemes will inevitably mean companies will give up on trying to keep up with growing liabilities. Currently, just 45% of FTSE 350 companies continue to operate a final salary scheme either open to both new members and future accrual or just open to future accrual. Yet, increased scrutiny and financial demands on sponsors, particularly from The Pensions Regulator (TPR), will cause the doors to be shut. This will be particularly acute following the last two years' BHS and British Steel problems, the FTSE 350 Pensions...

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