For many companies in the US and the UK, the pensions imperative of the past few years has been to move away from potentially ruinous defined benefit pension schemes and towards more manageable defined contribution plans. Companies in other countries, where governments are encouraging the growth of private sector pensions, are watching with interest.

Defined benefit plans give employees pensions based on salary and years of service. The investment risk falls on the company. If there is insufficient money in the pension fund, the employer has to make up the difference. In defined contribution schemes employees and companies pay into a plan, with the final pension depending on the performance of the money invested. If it underperforms, the employee has to make do with a smaller pension.