Final-salary plans are a powerful tool for keeping skilled staff, it says.
representative on the Career & Salary Plans Classification and Salary Appeal Boards.
Second, employers make smaller contributions to DC schemes than to final-salary plans, so pensions are likely to be lower.
Old-style final-salary plans may have suited the labour markets of the 1950s and 60s, when "company man" tended to stay with one employer for life.
The PPF, introduced at the behest of the government, provides a safety-net for members of company final-salary plans paid for by levies on those schemes.
An immediate cut in pension commitments by employers could allow manufacturers that have maintained final salary plans to weather the credit crisis and save jobs.
Even more strikingly, Barclays is planning to close the bank's scheme for its existing members.Corporate Britain is abandoning final-salary plans because they have become too expensive and risky.
The schemes are overwhelmingly final-salary plans in which pension benefits are determined by end-of-career earnings and length of service in employment.In broad terms, they provide benefits similar to those in a good private-sector scheme.
Before that, he was director of marketing for two years at Synygy Inc., a software maker that helps companies manage variable salary plans, in Conshohocken, Pa., after nearly a decade in the broadcast equipment industry.
Firms with money-purchase plans, meanwhile, simply keep making the same monthly contributions, because plan members take the consequences of any stockmarket volatility.British sponsors of final-salary plans have so far been better treated, because their pension assets are not marked to market, but valued by actuaries who can take a long-term view.
