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Contribution holiday

Almost 60% of UK pension funds are on a full or partial contribution holiday, says investment monitoring specialist The WM Company. A survey of 186 funds with £200bn ($320bn) in assets showed that their average contribution rate was 8% below the long-term rate recommended by their actuaries. For 17% of funds, the average contribution rate was above the long-term rate by an average of 2%. The average long-term contribution rate was about 16% of payroll and the current average contribution rate was 12%.

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