Decommissioning defined benefit (DB) schemes has been has been included as one of the key recommendations to improve future retirement outcomes.

JLT Employee Benefits' (JLT EB) said that employers need more support in their endeavours to manage down existing DB pension liabilities that no longer play a part in the recruitment, retention or motivation of employees if they are to properly engage with their defined contribution (DC) schemes or seriously consider defined ambition (DA) as an alternative.

The provider also offered some other key recommendations to improve future retirement outcomes in its 'White Paper' on 'Achieving the 21st century pensions settlement'.

These included extending the concept of automatic transfers to all transfers; making the Open Market Option compulsory and delaying retirement and focusing on the health of the workforce.

Mark Wood, JLT EB CEO, said: "The Government's flagship scheme - auto enrolment – has thus far been a success story, with extremely low opt-out rates (as low as 2%), even in these times of austerity.

"It constitutes a feather in Department of Work and Pension's cap and is a significant step forward in increasing future pension incomes. The focus should now be on ensuring that every £1 paid by members is made to work as hard as possible to improve retirement incomes."

JLT EB's paper was launched at a panel discussion that included pensions minister Steve Webb at the Liberal Democrats' party conference in Glasgow.

Other recommendations included introducing the option of active intervention to protect members; imposing 'tariff checks' on scheme charges and focusing member communications on pension outcomes rather than fund values.

Wood said: "People are still not saving enough for their retirement due to a number of socio-economic factors. Even the combination of the single-tier state pension and the proceeds of an automatic enrolment scheme is unlikely to provide an adequate pension for most people.

"We need the system to work in the best interest of consumers to protect and increase the level of participation and rebuild trust. As an industry, we need to encourage members to save with improved communication, more simplicity and transparency and easy options to improve their pension position."

First published 17.09.2013

monique_simpson@wilmington.co.uk