Survey shows defined contribution schemes favoured to cut costs

A survey of over 100 organisations by the employment benefit consultants Towers Perrin found that most employers switch from defined benefit (final-salary) scheme to defined contribution (money-purchase schemes) arrangements because of greater certainty of costs. Although the survey found a wide variety of employer contribution rates most were less than 10% of payroll.

Brief details of this and other recent surveys can be found on the website: www.pensionsurveys.com.