Is there a growing argument for cash balance schemes?

The recent ACA survey highlighted the growing gap between public and private sector schemes, with over 90% of private sector defined benefit schemes now closed to new entrants and 40% to future accrual. Whilst the ACA may have argued that the government should do more to reinvigorate private sector schemes it was also interesting to note that at least half of all employers surveyed said they should share or take on a majority of pension risks in investment, longevity and inflation risk rather than placing it all with the employee.

With growing numbers of employers looking to buy out their DB liabilities in the next 5 years as well as reviews of existing pension provision to accommodate the challenges of auto-enrolment, it would be good to see the pensions industry meeting the challenge of providing sufficient retirement income with increasing development of a wider variety of benefit structures.

Link to the full ACA article:

Read more: http://www.professionalpensions.com/professional-pensions/news/2134861/aca-decries-growing-gap-public-private-sector-provision#ixzz1iOsd3BMC
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