Most employers believe staff should have to make a compulsory minimum pension contribution above the current National Insurance (NI) levels, according to research.
A survey of 559 member companies of the Engineering Employers' Federation, finds that 77 per cent of respondents believe there should be a compulsory staff contribution higher than the NI rate. More than half (56 per cent) feel that a 'reasonable minimum contribution rate' would be between 4 and 6 per cent of employees' earnings.
The same proportion feel employers should make minimum pension contributions over and above the current NI levels.
The TUC's suggestion that employers' minimum pension contributions should be 10 per cent of employees' earnings, is regarded as 'unacceptable' by 42 per cent of the respondents. Only 10 per cent felt it was a reasonable amount. www.eef.org.uk