The defined ambition dilemma

JLT’s Mark Wood says DA could save some final salary schemes but shut others

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The Department for Work and Pensions' (DWP) recently launched consultation on defined ambition (DA) will unquestionably encourage many corporate sponsors to continue to support their current defined benefit (DB) schemes.

Others will see the flexibility proposed as a route to reducing their costs. As benefits are made more flexible the cost of buy-out becomes more manageable. Lower premiums on offer from insurers as...

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