One in four employers would consider levelling down their pension contributions when personal accounts are introduced, representing reduced provision for 2.4 million employees, according to a report by Deloitte.
The report considers whether and to what extent the proposals in the pensions white paper might impact on employer engagement with and the levels of contributions employers will pay into workplace-based pensions. The survey of 750 employers reveals 60% of employers who have a pension scheme claim their response to the reform programme would be to close the scheme to all or some employees (23%) or reduce contributions for new and/or existing staff (7%). Furthermore, 24% of employers who are currently making contributions over 3% say they will offer a lower contribution rate “than the one...
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