UK pension schemes took e26bn in contribution holidays
UK – UK pension schemes took contribution holidays or contribution reductions worth a total of 17.9 billion pounds (26 billion euros) during the 1987-2001 period, according to government data.
Over the period 2,881 schemes took contribution holidays worth 13.2 billion pounds, while 1,566 schemes made contribution reductions worth 4.7 billion pounds.
The data, on the government’s taxation department’s website, also shows that just 174 schemes made contribution holidays for employees – totalling 262 million pounds. And 256 schemes made 851 million pounds worth of employee contribution reductions, the Inland Revenue says.
There was a nine billion pound increase in benefits over the period, made by a total of 1,835 schemes.
For the most recent period for which data is available, 1998-2001, just 106 schemes have targeted 129 million pounds worth of contribution holidays. And just seven schemes in this period have an employee contribution holiday – valued at one million pounds.