Title
Contents
Acknowledgements 6
The Authors 7
Summary 8
1. Introduction 16
1.1 Background 16
1.2 Research aims and objectives 18
1.3 Methodology 18
1.3.1 Research design 18
1.3.2 Sample design and sample profile 19
1.3.3 Conduct of the interviews 20
1.3.4 Analysis of the findings 20
1.4 Report structure 21
2. Employers' reasons for providing a pension scheme 22
2.1 Historical reasons 23
2.2 Paternalism 23
2.3 Recruitment and retention tool 24
2.4 Other reasons for retaining a pension scheme 25
3. Employers' pension provision - past changes and future plans 26
3.1 Past changes 26
3.2 Future plans 29
3.3 Employers with DC schemes 29
3.4 Employers with DB schemes 29
3.4.1 Employers with closed DB schemes 30
3.4.2 Employers with partially open DB schemes 30
3.5 Employers with an open DB scheme 31
4. Perceptions of pension scheme risks and risk sharing 32
4.1 Employers' perceptions of pension scheme risks 32
4.1.1 Perceived risks with DB pension schemes 33
4.1.2 Perceived risks with DC pension schemes 33
4.2 Employer's perceptions of pension risk sharing 34
5. Employers' views about two approaches to pension scheme risk sharing 38
5.1 Collective Defined Contribution (CDC) scheme 39
5.1.1 Advantages of a CDC scheme for employers 39
5.1.2 Advantages of a CDC scheme for employees 40
5.1.3 Disadvantages of a CDC scheme for employers 40
5.1.4 Disadvantages of a CDC scheme for employees 41
5.1.5 Queries raised by employers about CDC schemes 41
5.2 Conditional Index (CI) scheme 42
5.2.1 Advantages of a CI scheme for employers 43
5.2.2 Advantages of a CI scheme for employees 43
5.2.3 Disadvantages of a CI scheme for employers 43
5.2.4 Disadvantages of a CI scheme for employees 44
5.2.5 Queries raised by employers about CI schemes 45
6. Would employers consider any form of risk sharing? 46
6.1 Employers with DB pension schemes 46
6.2 Employers with DC pension schemes 46
6.2.1 Increased risk 47
6.2.2 Complexity and administration 47
6.2.3 Promoting benefits of risk sharing 48
6.3 Incentives for adopting pension risk sharing models 48
7. Conclusion 50
Appendix A. The range of pension schemes offered by the employers in the study 52
Appendix B. Topic guide 53
Appendix C. Qualitative analysis using Matrix Mapping 60
Table 1.1 Profile of employers interviewed 20