Employers reject reduction of pension contributions in face of personal accounts

Fears that the proposed system of personal accounts will prompt employers to reduce pension contributions appear to be unfounded as just 1.2% say that they plan to do so.

A further 5.1% plan to reduce employee headcount, while†2.6% plan to implement a recruitment freeze. The Employee rewards watch 2007†survey from Thomsons Online Benefits also found that almost half of respondents that offer†benefits (45.3%), did not know how much these cost†as a percentage of payroll and just 3.9% thought that employees highly-valued their benefits package.

Since the same survey was conducted in 2004, there has been a 15.5% rise in companies offering a benefits package and the number of employers who are considering; are in the process; or have already implemented a flexible benefits scheme has gone up from 17.5% to 35.3%.