According to a statement made by Mercer Human Resources, more problems are on the way for members of defined benefit (final salary) pension schemes.
Many final salary pension schemes have been closed to new members of staff, with only existing members allowed to remain. Mercers stated that closing the doors to new members was the easy part. They went on to say: “the next big issue is how to deal with the current membership. Employers are fooling themselves if they think closing schemes to new members alone will solve the problem of rising pension costs and increasing risks”.
Tip:
If you are or were a member of a final salary pension scheme and are being asked to make choices, take independent advice. Pensions are complex and the right advice is crucial.
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