Pension contributions unchanged since 1996

The ACA's annual survey on pension trends also found very small firms, a major target for the Government's auto-enrolment scheme due in 2012, expect high opt-out levels when Personal Accounts are introduced. Around 91% of defined benefit (DB) schemes for businesses with less than 250 employees have closed to new entrants, the ACA found, compared with just 18% in 1996. ACA's chairman, Keith Barton, is concerned the mass closure of DB schemes has not resulted in increased investment in defined contribution (DC) schemes, despite greater longevity and low returns. Combined employer and em...