• From The BBC:

    Employers would have to contribute up to 35% of a salary into an employee’s pension scheme to match a public sector pension, PricewaterhouseCoopers says.The accountancy firm suggested that the “generosity” of pensions for workers such as civil servants and NHS staff could stop people moving jobs. The trade union Unison, however, said public sector workers’ pay compared poorly with the private sector. And many were part-time and unable to build up sizeable retirement incomes. ResearchPricewaterhouseCoopers (PwC) said private sector employers would face a huge bill if they tried to keep up with the value of a final-salary pension scheme for a public sector worker.
    It found that the employer could have to put up to 35.5% of that worker’s salary into the pension pot. With many businesses shutting their final-salary schemes, PwC compared a final-salary public sector pension with a less generous defined-contribution scheme in the private sector, where employers typically contribute 6% of an…

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    Posted by Jon @ 7:31 pm

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