Fifth of pension schemes to level down in 2012 - NAPF

The research found employer contribution rates in DC schemes remain stable at an average of 7% (median); over twice the 3% minimum employer contribution required by the 2012 reforms. Employee contributions have increased slightly from 4% in 2007 to 4.3% this year. However, whilst two-thirds (67%) of schemes said they would use their current contribution rate after the reforms, one in five (19%) respondents said they would ‘level down'. The findings will heighten the fears of many in the pensions industry who warn the introduction of personal accounts could leave many employees worse off...