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According to a survey conducted by Aon Hewitt, out of 91 companies surveyed, one-third are considering how to proceed once the introduction of the single-tier state pension in 2016 brings about the end of the state second pension (S2P). Of this third, the consultancy said that more than half had tabled the option of closing their DB funds to future accrual. Sponsors will also be able to amend accrual rates as a means of recouping increased national insurance contributions that arise as the pension fund provides benefits in the place of employees joining the then-defunct S2P.
Pensions minister Steve Webb has previously defended the state pension reform changes against claims they marked a "nail in the coffin" for DB schemes, arguing that there were other problems facing the market. The Department for Work & Pensions (DWP) was also criticised for its "cavalier" approach to the state pension reform after the implementation date was, at short notice, pulled forward by a year to 2016 – giving pension funds less time to deal with the problems posed by the end of contracting out.
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