Survey reveals worry over pensions cost

Concern over pensions costs means that 21% of employers have replaced their final salary pension schemes with money purchase arrangements for new recruits and a further 3% have moved from a final salary plan to money purchase for existing employees too.

These are two of the main findings of a survey by the pay and benefits research organisation Incomes Data Services (IDS). The survey covered a cross-section of 100 large employers, all of which operate pension provisions of some type for their employees.

The survey also found that 17% of schemes had tightened up on their criteria for paying ill-health early retirement pensions.

The survey forms part of Pension scheme profiles 2000-01 which also includes a directory with details on 54 major schemes. The report costs £120; tel: 020 7324 2599 for details.