Financial Times FT.com

Overprotection threatens DB schemes

By Steve Johnson

Published: May 11 2008 21:28 | Last updated: May 11 2008 21:28

Forcing defined benefit schemes to behave as prudently as insurance companies could be the “final nail in the coffin” for final salary provision across Europe, according to one of the continent’s largest asset managers (PDF).

Legions of occupational DB schemes have closed to new members and even to new accruals by existing members in the UK in recent years as the DB model has been assailed by rising longevity, weak market returns and more stringent regulation.

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