Final salary scheme closures slash future pensions benefits

Employers that close their final salary pension schemes and replace them with a money purchase arrangement typically slash the value of their employees' future pension accrual by 33%, according to a controversial report published by the actuarial consultant Union Pension Services (UPS). Pension Scheme Profiles 2003 makes direct comparison possible between final salary and money purchase pension schemes on a case-by-case basis for the first time. A comparison with UPS's 2000 guide confirms that where an employer has closed the final salary scheme over the past three years and replaced it...