The only solution to a second wave of final salary pension scheme closures is for the government to encourage the introduction of risk-sharing schemes, claims the Association of Consulting Actuaries.
Speaking at the National Association of Pension Funds’ (NAPF) annual conference, Ian Farr, chairman of ACA, says despite a continued reduction in scheme deficits, many employers are unwilling to continue with pension arrangements which could potentially damage the financial performance of their core business. However, in a presentation alongside Richard Mulcahy of Hewitt, ACA says the solution to the closure of defined benefit (DB) schemes is not the wholesale adoption of defined contribution (DC) schemes, as many employers want to do more while employees want a greater level of security....
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