KPMG to consult on pension contribution cuts

KPMG to consult employees on pension contribution cuts

Professional services organisation KPMG is consulting with employees on proposed cuts to pension contributions in order to deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic.

If agreed, the proposed decrease would affect 20% of KPMG’s 16,000 UK employees, who are currently saving in to a flexible retirement growth pension scheme, provided by Standard Life.

In April 2020, the organisation introduced pay proposals that were accepted by 620 UK partners. This grup received 20% – 25% pay cuts for the rest of 2020 in order to help protect jobs and save funds for the rest of the year.

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A spokesperson at KPMG UK said: “We are operating in highly volatile times and are proposing a series of actions to safeguard our business in the medium and long term. We are consulting with our people on a proposed temporary change to our employer pensions contributions.  At this stage, no final decision has been taken.

“Due to changing demand from our clients as a result of the Coronavirus pandemic, we have announced proposals to make fewer than 100 positions in our consulting business redundant. Our consulting practice employs more than 3,000 people and is continuing to see high demand for a range of core services such as digital transformation, supply chain management and cybersecurity. ”