Large British companies switching pension plans

Defined contribution plans to replace defined benefit plans
By
|hrreporter.com|Last Updated: 04/09/2003

London-based pension experts Punter Southall is warning employees of major British companies to prepare for a change in their pension plans.

Large British firms are expected to replace their defined benefit (“final salary”) plans with defined contribution (“money purchase” or “stakeholder”) pension arrangements for new employees. That means employers will have to contribute less and employees will have to contribute something. However, in a recent survey, Punter Southall determined that 90 per cent of respondents did not plan to contribute to their company pension plan.