New rules could shrink pensions
Staff who pay into their company pension schemes may be forced to increase their contributions because new rules introduced by Labour will lead to employers paying less for each member.
The new rules, which will come into effect in 2012, mean employers have to enrol every member of their workforce into a company pension scheme unless workers specifically opt out.
According to a report in the Daily Telegraph, 41 percent of the 210 biggest employers said this will force them to reduce the contributions they make for existing members in order to pay for the cost of enrolling new ones.
It quotes a study by the Association of Consulting Actuaries which said some employers could cut their contributions in half, leaving members to make up the shortfall or face a serious drop in the value of their pensions.
The report said middle income workers will be the worst affected as these tend to be enrolled in company schemes already, while lower paid workers tend to rely on state pensions.
Under the new ‘auto-enrolment’ rules, companies only have to contribute the equivalent of one percent of a worker’s salary, rising to three percent in 2017. Currently, employers contribute an average of six percent, but this is likely to drop as they spread their pension pot across a larger workforce.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025