COMPANIES remain committed to providing pensions for staff, but the cost of funding final salary schemes is damaging business competitiveness and investment, a survey suggests.
More than half of UK firms reported that growing contributions made to defined benefit final salary schemes were harming profits and competitiveness.
Forty per cent said pension costs had forced them to cut back on other employee benefits, and 27 per cent reported reductions in investment. One in six said jobs were lost to cover pensions costs.
But the survey of 246 chief executives, chairmen and senior board members by the Confederation of British Industry and Watson Wyatt, also shows a commitment to pensions provision.
About 86 per cent want their staff to retire with adequate savings, and 84 per cent said firms should help raise awareness of planning for retirement and that a company pension scheme helps recruit and retain staff.
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