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Administration June 6, 2003
UK Pension Plans Challenged
June 18, 2002 (PLANSPONSOR.com) - A new survey by
the Association of Consulting Actuaries (ACA) suggests that
the number of UK pension plans still open to new employees is
falling.
Reported by Nicole Halsey
The report showed that only 37% of pension plans in the UK remained open to new entrants.
Results of the survey show that:
- one in 10 plans has started winding up, and
- 39% are closed to new entrants
Of the plans still open, half are contemplating closure.
However, the ACA noted that the discontinuance of pension
plans would not be an issue if they were replaced by
defined contribution arrangements.
ACA’s findings come at a time when UK union leaders are suggesting that the government force companies to pay at least twice as much as their employees into pension plans.