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DC for executives

Pensions for executives based on full final salary and years of service at retirement look numbered, according to a new survey by consultants Towers Perrin.
The report shows executive pension provision moving away slowly from defined benefit (DB) towards defined contribution (DC) for tax approved pension schemes, but a rather more marked shift above the earnings cap.
Executive Pension Provision 1998, looks at executive benefits from tax approved arrangements below the earnings cap of £87,600 (E127,437) and shows that 81% are in final salary schemes compared to 90% in 1996.

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