Stakeholder increases pressure on DB

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By Leo Bland Final salary schemes are suffering under increasing pressures, from stakeholder to fund...

By Leo Bland Final salary schemes are suffering under increasing pressures, from stakeholder to funding shortages, which has caused speculation on the future of defined benefits. Howard Flight, Shadow Economic Secretary to the Treasury, predicts over the next five to 10 years defined benefits (DB) share of the occupational pensions market in terms of individuals in schemes will shrink from 80% to 50%. Flight believes the main problem is the advent of stakeholder, which he sees as likely to lead employers to shift to cheaper money purchase schemes from final salary arrangements. He said ...

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