The government's proposed insurance fund for pension protection could cost businesses between £340m and £375m a year, according to pension experts.
Pension experts are warning that moves to make companies honour their pension promises may lead small businesses to close final salary schemes in order to limit their liabilities.
Stewart Ritchie, head of pensions development at Scottish Equitable, said he expected many small enterprises would close their schemes.
The government plan will require solvent employers that choose to wind up a scheme to buy out the rights of members - making them liable for the estimated £250 billion deficit in pension funds.
Ritchie said: "Employers whose schemes are unfunded are going to get a very nasty shock indeed when they realise what they are in for."
