10 November 2006
Two-thirds of employers may cut pension payments to new staff
when a government-backed savings scheme begins in 2012, a survey
has suggested.
The survey, by Scottish Widows, also said 23% of firms would cut
pension contributions for existing staff.
The government's system of Personal Accounts will compel
employers to pay 3% of salary into workers' pensions.
Critics say this could lead to firms who currently pay a higher
pension cutting contributions to the 3% level.
This action has been dubbed "levelling down" by pension
experts.
