LONDON — The defined contribution tide has turned.
U.K. plan sponsors are beginning to replace their defined contribution plans with defined benefit plans or hybrids, consultants say.
In the past year, three U.K. plan sponsors have retreated from occupational defined contribution plans in favor of arrangements that combine a defined retirement benefit with a defined contribution chaser.
• Marylebone Cricket Club, London, which closed its 5-year-old defined contribution plan in June and partially reopened its £6.5million ($11.8 million) final-salary scheme for all staff.
• The Grosvenor Estate, London, which administers the property of the Duke of Westminster, closed its defined contribution plan in April and opened its £80 million defined benefit plan to provide all staff with a minimum level of defined benefit pension.
• Barclays PLC, London, which in January switched all staff that had been in a defined contribution plan to a career-average cash balance arrangement.