Staff in dark on what employers put in pot

Nearly one-third of workers do not know how much their employer contributes to their pension, a survey yesterday said.

About 30 per cent of people who are a member of their company pension scheme do not know how much is paid into it on their behalf by the firm for which they work, according to the government's Department for Work and Pensions (DWP).

The research also found that 59 per cent of public sector workers are not currently members of an occupational pension scheme.

The DWP said the research highlighted the importance of pension reforms that will begin to be rolled out in 2012.

Under the move all workers will be automatically enrolled into an occupational pension scheme after they have been with their employer for three months, although they will retain the right to opt out.

When the full changes come into force, individuals will have to save at least 4 per cent of their pay towards retirement, with their employer contributing 3 per cent and the UK government topping this up with 1 per cent.

Pensions minister Steve Webb said: "This research confirms the fact that too many people are not saving into a pension, which is why the plans we announced this week to introduce automatic enrolment into workplace pensions are so vitally important.

"Our reforms will mean up to eight million people are saving for the first time or saving more with support from their employer."