Companies that close final salary pension schemes to new entrants "have got their head in the sand" if they believe they are reducing their financial risk over the next 20 years, Ronald Bowie of the Faculty and Institute of Actuaries told MPs yesterday.

Forum Response: Counsel and Care

Martin Green, chief executive of Counsel and Care, told ePolitix.com: "This story indicates hat there is a need for companies and the government to address the issue of funding adequate increases in retirement.

"This is an urgent issue which will not be solved by knee jerk reactions like closing final salary schemes to new employees."

Forum Response: National Association of Pension Funds

A spokesman for the NAPF told ePolitix.com: "Employers who are finding the current market and administrative climate for pensions increasingly difficult should consider the whole range of options open to them before they make any decisions on scheme closures. Occupational pensions are an important part of an employee's benefits package and one that is increasingly highly valued".