More information on pension plans

A
survey of UK employers reveals that 21 per cent of those offering a final
salary pension scheme plan to close it.

The
survey of 252 employers by Employee Benefits magazine shows that nearly
three-quarters of employers with such pension schemes think staff do not
appreciate the cost and effort that goes into running the scheme. About half
feel their staff do not understand their pension.

The
magazine believes this is partly because pensions are complex and partly
because employers are not communicating with their staff.

Debi
O’Donovan, editor of Employee Benefits, said final salary (also known as
defined benefit) pension schemes are proving expensive as a result of the
downturn in the economy.

She
added: "Both the Government and employers, especially those which offer
defined benefit type schemes, need to make more of an effort to educate about
the need to make higher contributions, or to be prepared to work long past the
age of 65."

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