UK - Companies will enjoy improved industrial relations if they make one-off payments to plug pension scheme deficits, Mercer Human Resource Consulting claims.
Mercer said reducing shortfalls – by borrowing money or using available cash – would give greater security for members’ pensions and would increase staff loyalty to the company.
The consultant said shareholders would also benefit from more transparent disclosure of how companies raised finance.
Mercer worldwide partner Paul Greenwood said employees were already exposed to their employer’s success through future earnings, and this was compounded by the ability to meet their pensions promise.
He said: “By making one-off payments to their pension scheme and placing debt with investors – who are more able to bear and diversify the risk than pension scheme members – employers should benefit from increased staff motivation and retention.”
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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