Closing defined benefit schemes to future accrual: overview | Practical Law
This note examines some key issues for employers and trustees connected to an employer proposal to close a defined benefit pension scheme to future benefit accrual. The note considers the practical steps needed to effect such a closure, from amending the scheme and consulting with employees to managing conflicts of interest, as well as post-closure issues such as future pension provision and the impact on the scheme's investment profile. The note also considers the issues involved in changing pension arrangements by reaching individual contractual agreements with employees outside the scheme.