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Scheme change

The challenge for employers and trustees

All employers face the challenge of providing pensions that are considered a valuable benefit by their employees at a cost which is affordable. Final salary schemes are still the gold standard, but many employers are unable to afford the cost of providing final salary benefits.

Therefore, a large number of employers are having to change, or perhaps even close, their existing arrangements in favour of more affordable alternatives such as risk-sharing arrangements, career average schemes and defined contribution schemes. Employers are also merging their pension arrangements to reduce the running costs.

Trustees are often asked by employers to consent to changes to the benefits that are provided by their scheme. These changes may have a positive or negative impact on the benefits that members will earn, and Trustees need robust, commercial advice on their role and the duties that they owe to members.

How we can help

Eversheds has many years of experience assisting employers and trustees through the process of making changes to their schemes. This includes:

• closing schemes to new members or to future accrual
• implementing risk-sharing arrangements, and
• advising on scheme mergers.

Our advice is clear and straightforward, and our project management approach helps you to achieve your objectives on time and within budget.

Areas of expertise

• Closing a scheme
• Risk-sharing
• Scheme mergers