Posts Tagged ‘Contracting Out’
Budget Bad News for Final Salary Employers
In our recent article we wrote about the impending extra National Insurance costs that faces employers with final salary pension schemes.
This is going to disproportionately affect those employers who participate in public sector pension schemes – not all of whom are public bodies.
In his Budget yesterday George Osborne announced that these employers will start to pay more from 2016. This is a year earlier than we had anticipated. Osborne called it a ‘progressive pension reform’ although for many beleaguered employers in public sector schemes this will be a moot point.
At a time of massive cuts those employers who find themselves participating in public sector schemes as a result of outsourced arrangements may find this another bitter pill to swallow on top of funding and deficit rate increases.
Steve Clark