Benefit cuts could mitigate pension consequences of salary reduction

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Employers seeking to reduce costs should consider explicitly targeting employee benefits in a bid to mitigate the unintended consequences of pay cuts on pensions, a HSBC Actuaries and Consultants report says.

The consultancy firm said the consequences of a pay freeze or pay cuts on benefits could include a reduction in pension contributions where these are linked to salary and a reduction in final pensi...

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