27 July 2006
Defined contribution pensions work for employers, but employers
themselves have mixed views on whether DC meets the needs of
individual employees, according to Watson Wyatt.
At a recent Watson Wyatt workshop, senior HR and benefits
managers from some of the UK largest employers were polled and some
78 per cent of attendees said that, as a basic design concept,
defined contribution (DC) can meet the pension scheme needs of
employers either extremely or fairly well.
However, only 42 per cent thought that DC can meet the needs of
an individual employee at least fairly well, with 35 per cent
saying that the needs of employees could only be met "with
difficulty".
