The Department for Work and Pensions (DWP) has published an information note on risk sharing for employers who are considering making changes to their DB (final salary) pension schemes The note aims to give employers information on the range of options which they should consider and includes case studies from employers featuring different sorts of arrangements such as cash balance, hybrid schemes, career average schemes, longevity-adjusted schemes, schemes which have changed their accrual rates and increased normal pension age and schemes which have implemented cost capping.  

The guide also highlights the issues employers should consider when implementing risk sharing arrangements, such as statutory consultation requirements and the terms of employees’ contracts of employment, while emphasising that employers should seek their own legal advice.  

View the DWP’s information note. (pdf 281.960kb)