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.
