The National Association of Pension Funds (NAPF) warned members of pension schemes yesterday that they might have no say in being moved from their pension schemes to other retirement pensions that may be less rewarding.
The high cost running final salary pension schemes is causing employers to rethink their current pension schemes, Christine Furnish from the NAPF said yesterday.
Employers may consider moving their final salary pension schemes into money purchase schemes. These are not as rewarding to members of pension schemes as the final salary retirement pensions.
Nearly three-quarters of final salary pension schemes are already closed to new members.
Employees are offered money purchase pensions instead, which fail to guarantee the same levels of income as final salary pension schemes.
Ms Furnish told BBC Radio Four's Today programme that a disproportionate amount of cost and risk in the pensions system is now the responsibility of employers.
"Over the years, successive governments have increased the amount of responsibility and the level of benefits employers are expected to provide through occupational schemes," she said.
Members of pension schemes may be worse off in retirement
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Members of pension schemes may be worse off in retirement
Wed, 22 Jun 2005
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