Pension schemes are closing at the fastest rate ever as costs hit

Michael Bow
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COMPANIES killed off pension schemes at a record rate last year as mounting costs led to a slew of fresh closures, figures out today show.

A survey by the National Association of Pension Funds (NAPF) found that open defined benefit schemes plunged by a third in the private sector last year, down to just 13 per cent – the fastest closure rate ever.

Closures fell by nearly 10 per cent between 2010 and 2011.

“The pressures on final salary pensions have proven too great for many businesses,” NAPF boss Joanne Segars said.

The poll also found just 10p out of every £1 of pension fund cash was invested in listed UK companies last year.