DC Scheme - Company contributions

Snot

My employer has announced the closure of our DB scheme, which I imagine was already planned but Covid has brought forward. They have yet to announce what the company contributions will be in the new DC scheme and this has got me looking to benchmark what other multinationals offer. A quick search didn't really help, so can anybody offer any insight into what other companies will pay ?
Thanks

Albermarle

Anything from the minimum 3% by law up to who knows - 20%.
I work for a multinational and they pay 9%. Normally they are pretty tight and I think it is only this high as part of the deal to drop the DB scheme a few years ago. 

doris540

when they stopped ours in 2009 we got 5% its shocking compared with the public sector. And obviously ours are open to the stock market and such unlike the Public sector ones . Our DB scheme as it stands has a £33 million pound black hole in it as well

LHW99

Have you got or could you get Union support? If there are representatives within the company, they may get a heads up before the main workforce, and you could make sure they know you are interested and want to be informed firectly immediately things begin to move. They may also be aware of what is usual in your field.

barnstar2077

I know of a certain book publisher that has a substantial presence in the UK that pays 10% as long as you put in 5%.  

barnstar2077

LHW99 said:

Have you got or could you get Union support? If there are representatives within the company, they may get a heads up before the main workforce, and you could make sure they know you are interested and want to be informed firectly immediately things begin to move. They may also be aware of what is usual in your field.

I second this.  I hope you do have a union there.  I would be working for minimum wage, with minimum breaks and no say over when I have to do overtime if it wasn't for the union where I work.  I don't see your company being very generous willingly without a bit of prodding, they are changing it to save money after all!

[Deleted User]

My current one is age related, 6% then 8% at 40 and 10% at 50.
The new joiners don’t have the increases and also have to pay a monthly platform fee of 0.45% (fund fees are on average 0.2%)
Also my employer doesn’t pass on the employers NI saving on salary sacrifice
Multi national IT Consultancy 

Albermarle

Also my employer doesn’t pass on the employers NI saving on salary sacrifice

Nether does mine ( chemical giant ) 

green_man

My old (multinational) used to put in 8% as default (you put in 6%) but then they would match additional contributions you made up to (I think) 9% employee -> 11% employer.

Snot

Just to close off, the company have provided more details. If the employee contributes 5% they will contribute a max of between 10% and 14% depending on the employees grade. They won't add any of the NI savings. 

The real eye opener is the comparisons between the DB continuing and the new DC scheme, based on standard assumptions for growth etc the DC gives a pension approx. 60% lower.

As for Public Sector I don't begrudge them their schemes, how we fund them is another question.  I appreciate I'm still in a fortunate position with xx years in a DB scheme, so still better off than many. Although the 2.5% cap on any DB growth suddenly becomes a concern in light of all the Covid spending and possible inflation.

The unions are involved, but I don't know, typically the national officials make a lot of noise that these things won't happen but then they go quiet and they happen anyway. Maybe they are in the background getting improved conditions for the changes.

Joey_Soap

My present employer pays 12%. I pay nothing and that's fine because I already have enough pensions accrued elsewhere.