The Occupational Pensions Regulatory Authority have released figures confirming that over 6700 company pension schemes were closed last year, which reduced the number of occupational schemes by 6%. These closures have affected 37,000 worker's occupational schemes. Some workers have more than one scheme, but the figures do not include companies which have switched from defined-benefit to defined-contribution schemes.
OPRA confirmed that in the majority of the closures, there were less than 11 members. The schemes were either frozen for existing members and closed to new members, wound up where companies have gone into liquidation or closed to new members but continue to run for existing members. Nick Edmans, OPRA communications director said that the decline in the stockmarket, increased longevity, increased regulatory costs and the removal of corporation tax relief on dividends has caused the cost of pensions to rise.
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