UK - Micro-electronics firm Zetex has been forced to rethink plans to increase staff contributions to its final salary scheme following angry responses from workers.
Zetex’s 500 staff were told contributions would have to increase from 5% to 8.5% if they wanted to retain a 1/60th accrual rate.
Maintaining contributions at 5% would give them a 1/80th accrual while increasing payments to 6.5% would give them a 1/70th benefit.
But employer contributions were to remain unchanged.
Amicus AEEU convener John McNamara, who works as a line support fitter at Zetex, said: “The deal stinks.
“All of a sudden it is a big increase. People weren’t aware of this big problem.”
Workers’ anger has prompted parent company Telemetrix to consider a new offer that will see Zetex share the burden to ease the scheme’s £14m deficit.
In March, workers at Peugeot ended a long-standing dispute with the car firm over pension contributions, when management agreed to phase in the increases gradually.
Peugeot agreed to stagger the one percentage point increase, which will take employee contributions from 4% to 5%.
Standard Life has increased exposure to risk assets in three out of five funds in its Active Plus and Passive Plus workplace pension ranges.
Some 48% of employers are unaware of the services or help they offer to members of their defined contribution (DC) schemes, according to Aon.
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