Although the recent pension freedoms introduced in April 2015 are targeted at defined contribution members, they are also causing more defined benefit members to review whether to transfer some or all of the DB benefits into a DC environment, to access these new freedoms.
Our recent research of 259 UK employers confirmed that 11% have seen an increase in DB members reviewing the possibility of transferring DB benefits, and 11% of employers are also considering a DB closure or liability management exercise.
Of the companies surveyed, 32% communicated the pension freedoms to all active DB members and 20% communicated these freedoms to deferred and pensioner members.
Andrew Warwick-Thompson, executive director at the Pensions Regulator, said: “This year’s Purple Book marks a significant moment. After a decade of dramatic decline, the DB landscape has reached a point of relative stability in terms of scheme status and membership. However the impact of new pension freedoms will not be seen until next year’s Purple Book, and may yet shift the landscape again.