DB contributions double those in DC schemes

Employee contributions into defined benefit schemes are almost twice those made into defined contribution plans, according to the Government Actuary Department's (GAD) first survey of occupational schemes in five years. The 2000 survey, which was released last week, shows employee rates to private sector defined-benefit schemes are between 5% and 7% of earnings while in DC schemes the most common employee contribution rates are in the 2%-4% range. Employer contributions to private sector schemes vary considerably. In contracted-out defined-benefit schemes, the most common rates are bet...