Businesses which offer a good pension may find this aids them in the recruitment, retention and rewarding of staff, one sector commentator has claimed.
Tom McPhail, head of pensions research at Hargreaves Lansdown, said it is the funding rate which is the key element of a positive work pension plan.
He added that without decent levels of contributions, a good pension would not be delivered, even if every other aspect of the scheme was good.
Mr McPhail went on to note that employees are likely to increasingly demand more from their employer’s defined contribution pensions.
“The aftermath of the collapse of final salary schemes will be a world where individuals have to take an interest in their retirement savings and they will look to their employers to help them with that,” he explained.
His comments come after the Pension Quality Mark Award was awarded to three companies at the National Association of Pension Funds’ Investment Conference – Gallaher, Experian and Bupa.
Posted by Ross George
