When is a fraud not a fraud? This is a question that millions of people will be asking themselves as increasing numbers of employers reduce, or default on, pensions that workers have been paying into for years.
One of the major causes of the growing pensions crisis is the closure of 'final salary' schemes. Fifty six percent of companies which have reviewed these in the past five years have closed them to new applicants according to consultants Watson Wyatt, and many existing employees have been switched to more risky 'money purchase' schemes. On average bosses pay half into these schemes what they would to final salary pensions.