Transfer of risk

The number of defined benefit schemes still open to new members continues to decline and schemes that previously closed to new members are ceasing future accrual. As we know, the two main reasons are cost and what has become onerous regulation and legislation. The current economic climate has led to more schemes closing and more schemes entering the Pension Protection Fund (PPF), as the sponsoring company is unable to continue, and this has led to some fear on behalf of scheme members as to the strength of their employer and a comparison of the benefits they expect to get versus what the...