Last frontier for finals?

摘要

More final salary schemes are closing their doors to new entrants than ever. At least half of private sector final salary schemes are now believed to have been dropped, while others have reduced their accrual rates and are asking members to contribute more, in a desperate attempt to curb the final salary funding crisis. However, pensions funding is not just a private sector problem. Earlier in 2004, following a Lawrence Graham survey, it was calculated that the Local Government Pension Scheme (LGPS) had a deficit of more than ￡12bn. But, since it is ultimately funded by the taxpayer, it can still afford to accept new members and offer a benefit structure and contribution rate which is the envy of private sector workers.