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George Osborne, the Chancellor, is to consider a plan to raise the minimum contribution rate for private sector pension schemes from eight to 12 per cent of salary.
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However, this change could increase their perception that paying the minimum contribution rates are sufficient".
But ministers have already made some adjustments, such as putting back the date when minimum contribution rates for employers are due to rise, but extending the auto-enrolment deadline would be more challenging.
"The vast majority of these new members will have been enrolled at the minimum statutory contribution rate of 2% of earnings.
When the 3% rate hits, the costs will be greater still". The government should rule out any further increases to the minimum auto-enrolment contribution rate for employers, he added.
From the employers perspective what is required is for government to freeze any further increases to the minimum auto-enrolment contribution rate for employers, especially whilst there is so much Brexit uncertainty.
From October 2017, the total minimum contribution level will be 8%, with employers contributing at least 3%.
It was rated on a six-point scale (1 = minimum contribution; 6 = maximum contribution).
The minimum contribution for GE in 2013 (due Sept. 15, 2014) with MAP-21 rates is $528 million versus $2.2 billion without relief (GE expects to contribute the minimum).
The minimum contribution was $10,000, while "chairs" had to donate or contribute $100,000 per couple.
Finally, the pension and unemployment systems are financed with a fixed contribution rate of 35.6% of the covered wage (gross labor income, with a minimum C min =7.3 and a maximum C max =29.8 thousand euros).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com