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Aon to slash pension payments by half

Aon Limited is cutting contributions to its workers’ pensions, according to press reports.

The British arm of the global insurance and reinsurance firm is believed to be slashing payments to its workers’ defined contribution schemes in a bid to keep down costs.

Currently, the scheme required employees to contribute 2 per cent of pay in return for an employer contribution of between 6 and 12 per cent rising with age.

Now, according to the Financial Times, Aon is capping the company contribution at 6 per cent for workers who want to continue saving at the current rate, apart from for workers aged 50 and over who are willing to pay 8 per cent of their pay into the scheme, who will continue to get the 12 per cent company contribution.

The move also means Aon Ltd employees, which sits at the 5,000 mark, will have to pay up to three times current contributions to keep Aon’s matching payments at existing levels.

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