Employee concerns about company pension schemes are growing
HR departments are seeing increasing employee concerns about their company pension schemes, with one in three HR execs noting a rise in pensions complaints, according to new research from employee benefits consultancy Portus.
A further 28% of HR departments have seen an increase in the number of pensions-based inquiries, and the rise of both questions and complaints is causing serious concern for employers.
Around 35 of HR departments say they are concerned about possible regulatory or compliance issues for their organisation as a result of pension complaints.
While employees are generally supportive of the guidance on retirement planning they receive through work (with 48% saying the services provided by their employers are effective), nearly one in five (19%) say they have contacted their employer over the past two years about pension scheme issues.
Portus Consulting Commercial Director Steve Watson says: “HR departments have to some extent been put in the frontline of the push to tackle the UK’s retirement savings crisis and have played a major role in helping to deliver workplace auto-enrolment.
“There is a price for success, unfortunately, and that is a rise in complaints and concern about pension scheme performance from employees which could lead to major problems with compliance and regulatory issues.
“Pension schemes and employee benefits in general are a major part of the total reward package for staff and need to be clearly communicated to employees so that they can plan for their retirement and see the benefits of their own and their employers’ investment.”