ONS reveals cut in special pension contributions

Wed, 24 Feb 2010

The Office for National Statistics (ONS) has revealed that the value of special top-up payments employers made to their pension schemes nearly halved between 2006 and 2008.

According to the ONS, the value of these payments fell from a peak of £13.2 billion to £6.8 billion.

In the latest update to its publication Pension Trends, the ONS explained the payments were made primarily to remove deficits in the pension schemes.

The drop in the worth of special contributions meant that the overall level of contributions also fell.

In fact, the ONS stated there was a drop from £71.8 billion in 2006, to £58.6 billion in 2008 in the total income of self-administered pension funds .

The report said: "This is the biggest fall since the start of the series in 1984. It was driven by a reduction in employers' special contributions and a drop in transfers between pension funds ."

Meanwhile, the Prudential recently revealed that the pension gap between men and women has continued to grow.

The pension income gender gap has increased by £782 since last year when the difference was £6,642, according to the pension provider.
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