Paying for a job for life?

Hamilton, Sally
March 2005
Employee Benefits;Mar2005, p25
The article reports that employees in final salary schemes are lucky, compared with their counterparts in defined contribution schemes who, if taken ill and perhaps retiring early, are likely to get back little more than their pension contributions, if that. While trustees of final salary schemes have the right to impose strict qualifying criteria to sick members, in practice, many are pretty lenient and rarely check employees' progress. So now that general pension funding is under serious pressure, employers and trustees are looking at ways to reduce such costs as ill-health early retirement.


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