Firms told shut defined benefit schemes

A major player in the pensions industry has called on employers to close off defined benefit pension schemes and move their staff into defined contribution (DC) schemes instead.

Financial services comp-any IFG made the call after 80% of all defined benefit schemes (DB) here submitted recovery plans to the Pensions Board by the Jun 30 deadline.

The company’s director of corporate pensions, Fionán O’Sullivan, said employers will have no choice but to move their DB schemes to schemes, as the latter put greater onus on the individual to become more active in the management of saving for their retirement.