UK Employers have made nearly £3bn in lump sum payments to fill pension deficits in the past year, with 54 per cent reporting the extra contributions have hurt profits and competitiveness, says the CBI employers’ organisation.
Its annual pensions survey found that 40 per cent of 264 senior executives and board members employing a million private sector staff in schemes with £120bn in assets had been forced to cut back on other employee benefits. And 27 per cent said they had reduced investment, with the effect most severe in medium-sized companies. One in six, or 16 per cent, said jobs had been cut.
