Staff pension contribution should be above NI levels

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.

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