Employee reward and benefits news

ACA: Public pension policy is failing

Nine out of ten defined benefit pension schemes of firms with combined total assets of £139 billion are closed to new entrants, with one in five also closing theirs to future accrual - double that of four years ago, the Association of Consulting Actuaries (ACA) has revealed.

Furthermore, 59 per cent of employers plan to review pensions ahead of 2012, while just six per cent of respondents agreed that the government's policy of supporting quality pensions had actually worked.

Keith Barton, chairman of the ACA, said that the statistics show that there are worrying times for everyone looking to retire in the years ahead.

He explained: "Whilst the government's personal accounts initiative eventually may bring on board more pension savers, it has to be remembered that these accounts are designed to 'fill the gap' with a low-level pension, where no better pension scheme exists.

"Quality pensions require higher contribution levels."

The ACA has over 1,700 members in around 75 firms, forming the largest national grouping of consulting actuaries in the world.

Posted by Michael Ewing

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January 5th 2010
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