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In final-salary schemes, there is no need for valorization.
In the end, 16 per cent of the sample was not employed in the private sector and 15 per cent had a final-salary pension scheme.
He is the man who takes a risk because there is an open-ended commitment on the pre-award dynamism in the final-salary schemes.
I made the point that millions of people in their 30s and 40s now find that pension funds are phasing out final-salary schemes.
I would not be at all surprised if most final-salary company pension schemes moved, for new employees, towards being money-purchase or defined-contribution schemes.
The standard final-salary pension scheme is one that matures after 40 years of work, but we assume that not many judges qualify under that criterion.
There are some centralised schemes, where there is more than one employer, which are final-salary schemes.
It is likely that, within 10 years, the proportion of pensions that are not in a final-salary type of scheme will be the majority.
The simplest example is to be found in the formula for final-salary-type schemes.
The evidence is that people with money-purchase schemes work longer, whereas people with final-salary schemes tend to end work earlier.
I wanted to say a word about final-salary pensions, but that will have to wait for another day.
The cumulative effect is that many pension funds are phasing out their generous final-salary schemes and introducing instead money-purchase schemes.
First, there are company pension funds—occupational pensions that are final-salary schemes.
I concede that a minority of pension schemes are final-salary schemes.
There is a built-in pre-award dynamism on the individual's earning record as a fundamental part of the final-salary type provision.
