The funding of people's retirement is set for major reform
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Two-thirds of employers may cut pension payments to new staff when a government-backed savings scheme begins in 2012, a survey has suggested.
The survey, by Scottish Widows, also said 23% of firms would cut pension contributions for existing staff.
The government's system of Personal Accounts will compel employers to pay 3% of salary into workers' pensions.
Critics say this could lead to firms who currently pay a higher pension cutting contributions to the 3% level.
This action has been dubbed "levelling down" by pension experts.
Pension reforms
Personal Accounts were first proposed by Lord Turner in a series of reports into the UK pensions system. Who will operate the system - insurers or the government - has yet to be decided.
Contributions would come from employers, staff and the government through tax-relief.
But the proposed employer contributions into the Personal Accounts are below the level of many existing workplace pension schemes, hence the 'levelling down' theory.
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