According to the Occupational Pensions Regulatory Authority (OPRA), the number of occupational pension schemes still in operation has fallen. In March 2003 there were 100,000 schemes still open but at the same point this year the number has fallen to 94,000.
Our View
Since the severe falls were seen from stock markets around the world, occupational pension schemes have taken a real hit. Whilst many people are criticising their employers for either closing or winding up the pension scheme, it is not really their fault.
Pensions are seen as an extension to salary and many employees in the past have retired on very healthy pensions. Whilst this is likely to continue in the public sector, the private sector has been heavily hit. This is because any deficits in the pension fund have to be made up by the employer.
Many employers are having a hard enough time as it is, without having to pour endless amounts of money into pension schemes.
Times are changing and we really believe that more and more occupational pension schemes will close.