Employers must improve pensions communication

Employers
should be responsible for educating staff about pensions, claims Mercer.

The
HR consultancy says employers must improve internal pension communication and
not shy away from informing staff because of the costs of pensions to firms.

Trevor
Rutter, communication consultant at Mercer, said: "Employers must bear
some responsibility for pensions education as traditional final salary schemes
are closed, and staff are left to take their own decisions on investment and
contribution levels.

"Companies
should decide what level of pensions communication they want to give as too
often it is haphazard. Employers need to decide where they stand on pension
communication and education and how much responsibility they need to
take." 

Rutter
believes that a clear pension policy will help to attract and retain staff.

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"By
ensuring employees understand the true value of their benefits, companies can
not only avoid problems but also build loyalty," he said.

By Paul Nelson