Pension provisions will slide in 2012 - ACA

  • Story by: Girlie Garduce
  • Magazine: FinancialAdviser
  • Published Thursday , September 18, 2008

New research reveals companies will cut pension provision when Personal Accounts is introduced.

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Almost one-third of small firms intend to slash their pension provision when personal accounts are introduced in 2012, according to the Association of Consulting Actuaries.

The introduction of personal accounts will see employees automatically enrolled into pension schemes, with employers having to donate three per cent of workers' salaries into the fund.

The ACA research, which surveyed 394 small firms, revealed that employers at the companies with fewer than 250 staff, expect up to 40 per cent of them to opt out of the scheme for financial reasons.

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