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KPMG accountancy firm to put hold on pension cuts

It is said that KPMG told its 17,000 UK staff that it was pausing plans to reduce pension plans for some of its 3,000 employees. 

According to Sky news, ‘Insiders said that roughly 500 of the affected employees had formed a collective action group to fund a legal claim against the firm’

In July KPMG announced that it was launching a “consultation process” on reducing employer pension contributions to 4.5%. 

A move which may “disproportionately” affect older colleagues on “more generous” pensions schemes. 

In a memo distributed to staff on Monday, KPMG said it had commenced the pensions consultation in July as “part of a broader range of measures to reduce overall costs in FY21 and to protect jobs in an unpredictable economic environment”.

It added: “We have decided to pause on any proposed temporary change to contributions in FY21.

“We are continuing with our longer-term review of our pension scheme to ensure that we have an offering that is fair to all colleagues, competitive and helps attract and retain the best talent in the market.”

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