Firms may consider levelling down pensions in 2012

Almost half of employers may end up considering scaling back their pension provision when auto-enrolment and compulsory employer contributions are introduced in 2012.

Research by Gissings shows more than one-in-five employers (21%) may consider levelling down their provision to the statutory minimum, and 28% have yet to decide whether to do so.

Almost one-third of employers (27%) say the introduction of personal accounts will lead to a review of overall pensions strategy.

The survey of 68 organisations, Preparing for 2012 – The Introduction of Personal Accounts, found that general awareness of government pensions reform is high (79%). But 35% of employers have yet to calculate the extra cost of pension provision for their staff.

Almost one-fifth (18%) reported significant numbers of non-joiners, and 31% said they had take-up rates of 50% or less.

Currently only 28% of those employers operating a defined benefit or occupational defined contribution pension automatically enrol new members.

What are your main priorities in setting your benefits strategy for the coming year?