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.

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.