The percentage of defined benefit (DB) schemes now open to new members fell from 43% in 2006 to 13% in 2015, as companies have become more aware of the market and risk, according to new research.

The tenth edition of The Purple Book, jointly published by the Pension Protection Fund and The Pensions Regulator, gives a comprehensive picture of the risks faced by around 6,000 defined benefit schemes in the UK.

It also contains the last decade of trends and major changes within the defined benefit pensions sector.

In a year that saw major shifts in the pensions landscape, including the pensions freedoms, the research in the book shows that trends in DB pensions have remained stable and there has been a levelling off of the closure of open DB schemes.

It also says that schemes continued to de-risk through asset allocation changes – between 2006 and 2015, the equity share of total assets fell from 61.1% to 33%, the gilt and fixed interest share rose from 28.3% to 47.7%, and the 'other investments' share of total assets rose from 10.6% to 19.3%.

The chief financial officer of the Pension Protection Fund, said: "The Purple Book shows that the UK's DB pension landscape has seen seismic shifts over the past decade and highlights the necessity of effective risk management.

"It is more important than ever that the PPF exists to ensure that members, of schemes that really are unable to pay what they promised, don't end up without any pension at all."

Andrew Warwick-Thompson, Executive Director at The Pensions Regulator, said this year's book marks a significant moment.

"After a decade of dramatic decline, the DB landscape has reached a point of relative stability in terms of scheme status and membership, however, the impact of new pension freedoms will not be seen until next year's Purple Book, and may yet shift the landscape again."

He said the industry has entered a new phase and called on trustees and employers to "work together to agree their long-term aims, and the best way to secure their members' benefits."

"We are committed to exploring credible new ideas with the pensions industry, and to working with sponsors and trustees to secure sustainable schemes that deliver good member outcomes over the decades to come," he said.

First published 11.12.2015

Lindsay.sharman@wilmingtonplc.com