Motorola has slashed its employee pension benefits to save cash, adding to a growing list of US companies that have retreated on pension promises as the slumping economy has put pressure on finances.

Pension cuts are set to become far more common in the new year unless US companies are given more time to make up for pension shortfalls caused by the recent collapse in stock and bond markets, warned Mark Ugoretz, president of the ERISA industry committee, which represents big employers.