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19th August 2019
:: Blog | February 2009 (16 blogs) | Cutting pension contributions: what employers need to check

 
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Cutting pension contributions: what employers need to check  
 
It is the speed of the fall into recession that appears to have taken many companies by surprise. Company cashflows are suffering as a result, and consequently employers are looking at ways to reduce outgoings. Media reports suggest that this includes seeking to reduce employer pension contributions to defined contribution schemes.
 
But employers need to be made aware by their advisers that pensions are deemed in law to be deferred pay, so reducing contributions may not be as easy a task as might first appear. There might also be a contractual obligation to provide a pension, and in some circumstances the contribution rate may have even been specified in a Job Offer or Contract of Employment.
 
With the current fear and uncertainty over the economy and job security in particular, sensible negotiations with employees may indeed lead to reduced employer pension contributions. However, this is likely to be far more successful if the employees’ co-operation is recognised and pension promises are honoured when the good times return. See:
 
Anyone interested in the further articles, consultation and legislation see:
Mike Jones, MyCompanyPension.co.uk Ltd, February 2nd 2009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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