More than half (58%) of employees have had to increase their contribution levels into defined benefit (DB) pension schemes in the past 12 months.
Other employers (17%) have moved from offering a DB scheme to a defined contribution (DC) plan in a bid to control costs, while a further 12% have increased company contributions to a DC scheme, according to The changing nature of corporate pensions in the UK, by consultancy Towers Perrin.
A fifth of respondents intend to increase their contributions to DC schemes in the next two years, while just under a third (31%) plan to raise employee pension contributions in the same time frame. The same number (31%) propose to replace staff contributions with a salary sacrifice arrangement.
A further 21%, meanwhile, plan to integrate their organisation's pension schemes into a flexible benefits plan.
The demise of DB schemes looks set to continue, with 14% of respondents planning to close their scheme to new entrants.
- For more information email mark.duke@towersperrin.com
| What changes do employers propose to make to pension plans over the next two years? |
Lower value of defined benefit (DB) plan40%
Replace employee contributions with salary sacrifice31%
Increase employee contributions31%
Integrate with wider flex programme21%
Cash alternative to pensions20%
Increase employer DC contributions20%
Close DB to new entrants14%