Employer pension contributions hit all-time high

Employers’ contributions to self-administered pension schemes in 2004 were a record 4.75 times as much as employee contributions, according to new figures from the Office for National Statistics (ONS).

In 2004, the figures show, employers contributed £25.6bn to self-administered pension schemes, while employees £5.4bn.

The comparable figures for 2003 were £20.9bn and £5.3bn.

Stephen Yeo, a partner at Watson Wyatt, said employees were now seeing the true value of their final salary pension schemes.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Comments

This field is for validation purposes and should be left unchanged.

Δ

“On average, for every £1 they contributed in 2004, their employer paid in £4.75,” he said.

“Although some companies have reacted to pension scheme deficits by requiring employees to pay more, these figures show that these schemes still represent unprecedented value.”