A spokesman for The Pensions Advisory Service (TPAS) has stated that almost all employers are keen to “get out of” final salary schemes in favour of money purchase plans.

This type of scheme could soon be the package most often offered by employers at it lays all risk with the employee, the group has said.

Des Hamilton, technical director of TPAS, said: “The final salary scheme is one which employers are not prepared to install and are looking for ways to get out of them.”

He went on to predict that in ten years’ time such schemes will only be found in the public sector.

The preferred money purchase scheme allows employers to pay money into a retirement fund which is then invested.
In related news, Paternoster, the company that acquires pension schemes, expects the pension buyout market to at least double during 2008, the Banking Times website reports.

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