The pace of scheme closures is anticipated to see minimal change with the implementation of the new DB funding regime, according to the Society of Pension Professionals (SPP) members.
Around 200 members were surveyed recently, and 71 per cent said they thought the new policy would have little to no effect on the rate at which open schemes close. On the other hand, only 7 per cent anticipate a decline in closures, while 22 per cent anticipate an increase.
These insights were made at an SPP event that addressed the advantages and difficulties of open DB schemes. The session looked at opportunities for innovation, benefit design, investment methods, and funding against the backdrop of 500,000 individuals who continue to contribute to private sector-defined benefit plans, with assets under management in the billions. The difficulties open schemes face, especially with regard to regulatory support, were also discussed.
DLA Piper partner and panel chair Joel Eytle says: “As always, the SPP event facilitated a diverse mix of views from a broad range of industry professionals.
“Pension professionals may have a range of views about how best to address the challenges and opportunities of open DB schemes but make no mistake, the message is clear that DB will remain an important part of the pensions landscape for many years to come.”
