Pensions gap widens

Coverage of defined benefit (DB) pension schemes in the private sector, in most cases based on an employee’s final salary, is shrinking faster than defined contribution (DC or money purchase) schemes are growing, according to figures published by the TUC. Between 2005 and 2008 private sector DB membership fell from 18.6% to 13.5%. Over the same period, membership of DC schemes with an employer contribution only rose to 21.8% from 19.9%