According to the Employers’ organisation, the CBI, the extra cost of funding a final salary pension scheme is hurting company competitiveness, and wrecking investment plans.
The CBI commissioned a survey of 250 company executives, and found that over 50 per cent thought that final salary pension schemes were damaging profits . Furthermore, a portion of those surveyed found that the cost of pensions had forced them to cut back on employee benefits.
Employees were keen for staff to retire from work with proper savings in place, but under one in 10 believed that companies needed to provide final salary pensions.
The deputy director-general of the CBI, John Cridland, reportedly commented: "Businesses are determined to help provide a decent retirement for their staff, and see a good pension scheme as a big advantage when recruiting. It is nonetheless clear that the growing burden of defined benefit pension contributions is taking its toll on future jobs, investment and growth. However, it is encouraging that more staff as well as businesses are seeing defined contribution schemes as a valuable vehicle for retirement savings, and that contributions from firms are rising."
Final salary pension schemes damage company profit
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Final salary pension schemes damage company profit
Wed, 10 Oct 2007
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