Employers move to top up pension funds

Six out of 10 employers have made “special” additional pension contributions to help plug their scheme deficits in the past year, according to research.

The main reason for extra pension contributions, cited by 30% of the 100 FTSE 100 companies surveyed, was to cover shortfalls in their pension schemes.

A quarter of businesses also cited general risk mitigation as a primary reason for additional pension payments, the survey by Mercer HR Consulting and The Association of Corporate Treasurers showed. 

Only 7% said they made special contributions to reduce their Pension Protection Fund (PPF) levy or for tax reasons. 
 
Mercer predicted that increasing numbers of companies are likely to follow suit this year.

Pensions watch