Body calls for hybrid pensions

employer task force says firms closing final salary schemes should look beyond dc products

Peter Davis's Employer Task Force on Pensions has called on firms closing final salary pension schemes to consider career average or hybrid options rather than pure defined contribution models. Hybrid schemes, which place less risk on the employer than traditional final salary plans, involve members being part of both a defined benefit or defined contribution scheme or transferring from DC to DB after a certain length of employment. The group, led by the ex-J. Sainsbury chairman, has warned of possible conflict with employees if the bulk of workforces are allocated to DC schemes, typicall...