The Employee Benefits Salary survey 2014 , which questioned 361 people who are responsible for managing benefits and reward in UK organisations, found that 9% pay in 10% or more of salary.
Under auto-enrolment legislation, current minimum contribution levels are set at 1% for employees and 1% for employers. But from 2017, contributions will gradually increase, which may be a shock for the 6% of respondents who currently pay nothing into their DC scheme.
Three-quarters (75%) of respondents are members of a DC pension scheme , with the majority (59%) being members of a group personal pension (GPP) plan , 18% members of trust-based money purchase plans, and 13% members of a stakeholder pension.
It is surprising that 5% of respondents who know they are in a DC pension do not know what type of scheme it is, given that HR and benefits professionals are expected to support their workforces through auto-enrolment with financial education and communication exercises.
Less worrying is the fact that just 2% of respondents do not know how much their employer contributes to their pension.
Are you an active member of a defined contribution pension scheme?
Yes 75%
No 26%
Source: Those responsible for reward and benefits for staff in their own organisation (266)
Which type of defined contribution pension scheme do you belong to?
Group personal pension plan 59%
Trust-based money purchase plan 18%
Stakeholder pension 13%
Group self-investment personal pension 5%
Hybrid scheme 1%
Do not know 5%
Source: Those responsible for reward and benefits for staff in their own organisation, who are members of a defined contribution pension scheme (197)
How much does your employer contribute into your DC pension plan (as a percentage of your salary)?
Zero 1%
Up to 3% 7%
4% 9%
5% 11%
6% 12%
7% 8%
8% 12%
9% 5%
10% 17%
11% 1%
12% 9%
13% 2%
14% 2%
15% 1%
More than 15% 4%
Do not know 2%
Source: Those responsible for reward and benefits for staff in their own organisation, who are members of a defined contribution pension scheme (197)
