Private sector DB scheme decline is inexorable - Watson Wyatt

Rash Bhabra, head of corporate consulting at Watson Wyatt, said the figure could increase to one in 25 as existing members of closed schemes retire or move on.

He said: "The decline in membership of defined benefit schemes has been inexorable but was also quite slow between 2007 and 2008. That is because, a few years earlier, employers were content to close their schemes to new entrants and let staff turnover do the work.

"Some employers may have reached the point where the most of the members who were not going to stay long-term have already left."

Mr Bhabra said the figures showed what was happening 18 months ago and could represent the calm before the storm.

Harry Katz, principal of London-based Norwest Consultants, said public sector pensions are paid for exclusively by the taxpayer.

He said: "The government is an employer and wants to attract an employee, for most people in business that has to be paid by the employer.

"The government promises to pay the employee a pension, but does nothing about it to pay for it, which is a pretty lousy way to go about things.

"Years ago government employees did not get paid as well as those in the private sector, so it was made up giving them a pensions promise, but that is no longer the case."