Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

More employers cutting pensions

Clare Dobie
Wednesday 03 March 1993 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

MORE than half of employers are taking a holiday from making contributions to pension schemes, according to a survey by the National Association of Pension Funds, writes Clare Dobie.

The latest survey, covering pounds 207m of assets, 750 organisations and 4.5 million employees and pensioners, shows that in 55 per cent of all private sector schemes employers have stopped or reduced their contributions to pension schemes. The proportion rose from 48 per cent a year ago.

Pension holidays have been an important factor in buoying company profits. Contributions by employees were suspended or reduced in 21 per cent of cases.

Only 1 per cent of members of occupational schemes left those schemes last year, despite worries about security in the wake of the Maxwell fraud and publicity given to personal pensions.

Non-management employees are gaining ground as trustees, with the proportion of schemes having employees other than managers as trustees rising from 59 to 65 per cent last year.

There was a rise in the proportion of schemes guaranteeing increases in pensions from 70 to 74 per cent.

Self investment - investing pension money in the sponsoring company - is allowed by the rules of 60 per cent of all schemes.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in