Engineers could find it easier to switch jobs once the Government’s proposed stakeholder pensions are introduced.
A survey released yesterday by the Engineering Employers’ Federation (EEF) shows that many firms will adapt their pension schemes to make moves from one to another less costly.
‘This reflects labour market changes,’ said EEF head of employment affairs David Yeandle. ‘The time spent between jobs is getting shorter.’
‘Final salary’ schemes can make it costly for staff to take up a new pension when they change jobs. Firms are likely to address this by using the stakeholder scheme as a basis for adding ‘money purchase’ elements.