Pension provision in private sector under ‘severe threat’

PRIVATE sector pension provision is under “severe threat” as nine out of 10 companies say they are altering their pension investment strategy.

A survey by Aon Hewitt among 74 companies in Ireland also found that, in addition to a defined benefit (DB) plan, almost four out of five companies provide a defined contribution (DC) plan to employees.

However, 70% of employers have closed their DB plan to new entrants. In addition, a large number of employers have asked members to bear some of the pain of rising costs through increased contributions.