UK - Employers' contributions to self-administered pension schemes in 2004 were nearly five times as much as employee contributions, according to new figures from the Office for National Statistics.
Commenting on the finding, Stephen Yeo, partner at Watson Wyatt, said: “The cost of pension has risen in recent years due to increasing longevity and lower expected investment returns.
“In 2004, employers increased their contributions by nearly a quarter compared with 2003. As a result, they paid four and three quarter times the amount paid by employees. This is a record ratio, comfortably exceeding the previous highest figure of four times in 2003.”
He added: “Employees are now seeing the value of their final salary pension schemes. On average, for every £1 they contributed in 2004, their employer paid in £4.75. Although some companies have reacted to pension scheme deficits by requiring employees to pay more, these figures show that these schemes still represent unprecedented value.”
In 2004, the ONS figures show employers contributed £25.6bn to self administered pension schemes and employees £5.4bn. In 2003, employers contributed £20.9bn and employees £5.3bn.
Of the employer contributions, £17.6bn were normal while £8bn were special or one-off contributions, most made to top up deficits in DB schemes.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.