From The BBC:
American Express has suspended pension contributions for all its UK employees for the next 18 months, saying that the payments had become unaffordable.Trimming contributions has become more common, with firms blaming the economy, but Amex is the first high-profile company to stop them completely. Staff had seen 3% of their salary paid into the stakeholder scheme and their own contributions matched by up to 6%. This stopped on 1 July after the 6,000-strong workforce accepted the move.
In a statement the financial services firm said it had acted after consulting with staff and their representatives. “We have taken the decision to temporarily suspend company contributions to UK pension plans. This took effect from 1 July 2009 and the suspension of contributions will be lifted no later than 1 January 2011,” it said. “We will continue to keep employees informed regarding whether we will be able to lift the suspension before this date. ” ‘Worrying development’Most of Amex’s UK staff belong…
Leave a Reply