FTSE 100 companies are contributing an average of 70% of executives’ pay to fund the final salary scheme of the top bosses, according to a report by Lane Clark & Peacock.
Higher earners’ pensions are far more expensive than those of ordinary employees. Benefits for employees in final salary schemes cost far less as a proportion of pay than those of senior executives.
Data from the Office for National Statistics shows that 80% of companies with 500 employees or more, which have defined benefit pension schemes, require employer contributions of between 15% and 20%. This contrasts with the 70% of salary paid for top executives.
Friday, July 24, 2009
Bosses Cost Bulk of Pension Schemes
I am surprised I've not seen this news plastered around more. In a nutshell, a new study shows that the bosses of the big FSTE companies cost the pensions schemes far, far more than the ordinary workers. The greedy bastards.