Deloitte has launched a consultation with employees in plans to slash employer pension contributions by nearly two-thirds for 12 months.
The big four accountancy firm and consultancy is seeking to reduce costs as it grapples with the economic fallout from the Covid-19 pandemic.
The maximum employer pension contribution is currently 12% but Deloitte is seeking to reduce this to 4.5%, Sky News reported. The move would save the company tens of millions of pounds during the year, a source told the news agency.
Around 19,000 members of staff would be affected - although equity partners, who are not eligible to join the pension scheme, would not be impacted by this decision.
A spokesperson told Professional Pensions: "We've been closely monitoring and managing the Covid-19 situation and supporting our people and clients as a priority. We are doing all we can to protect jobs and our business in the coming months. As part of this, we have started a consultation with our people on temporarily reducing our maximum employer pension contributions."
The coronavirus outbreak has caused a number of firms to re-evaluate their pension costs, with newspaper publisher Reach one of the latest to confirm it was seeking to defer deficit recovery contributions (DRCs).
Similarly, ailing retailer Debenhams, which has entered into administration, failed to pay its April DRC. Following guidance from The Pensions Regulator that trustees should be open to such requests from sponsors, Lane Clark & Peacock estimated over 500 employers would look to make use of the facility.
Thirteen recommendations for the Money and Pensions Service (Maps) have been laid out in an independent report to address the “urgent” financial wellbeing implications of the coronavirus pandemic on Britons.
The Pensions Regulator (TPR) has launched its 15-year corporate strategy in the form of a discussion paper, revealing protecting the future financial wellbeing of savers will sit at the heart of its work.
This week’s top stories included a warning from Lincoln Pensions on the “triple whammy” faced by sponsor covenants, while MPs called for further input on the Pension Schemes Bill.
Incisive Media - the Covent Garden-based publisher of Professional Pensions – has won the AOP’s digital publisher of the year accolade for the fifth time in ten years.
Wilton Re has made an investment in Clara Pensions to support the consolidator’s growth and development.