The British arm of one of the world’s biggest insurance brokers is cutting its contributions to its workers’ pensions by up to half, the FT reported. Aon said it believed it was the first large company in the UK to cut payments to its workers’ defined contribution schemes, in a change that will mean employees have to pay up to three times current contributions to keep matching payments at existing levels. Pensions experts said the move by the insurance broker, which employs 5,000 people in the UK, could encourage other employers to follow suit. Spiralling pension costs are rising to the top of corporate agendas as employers struggle to cope with the deepening recession.

This entry was posted by Stacy-Marie Ishmael on Wednesday, April 8th, 2009 at 5:05 and is filed under Capital markets. Tagged with aon uk, Pensions. Edit this entry.