The rise and rise of cash in lieu for FTSE 100 execs

It seems we have reached a tipping point where defined benefit is no longer the most common pension arrangement of FTSE 100 companies.

I have long said that focus on the adequacy of an employer's defined contribution offering will happen once senior executives are relying solely on such provision.

But it appears I may be proved wrong, as many executives now have a combination of pensions arrangements that include DC, DB and cash, due to the decrease in annual and lifetime allowances.

According to the Trades Union Congress’s annual PensionsWatch survey released today, 64 per cent of senior executives now receive cash as part of their pension provision, up from 29 per cent in 2011.

In April, the lifetime allowance was decreased to £1.25m from £1.5m. And the annual allowance was decreased to £40,000 from £50,000.

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