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.