Final salary schemes will become history

Most defined benefit schemes have passed the point of no return, writes Alistair Graham

Monday 16 September 2002 at 16:00

Final salary schemes are history. That is the verdict of corporate Britain, which in the last few years has learned enough about the impact of providing a final salary pension to know it wants rid of them.

Most final salary or defined-benefit (DB) schemes are being closed in favour of cheaper defined-contribution (DC) schemes, which unlock employers out of paying guaranteed pensions and transfers the risk to employees.