Pension portability across company brands eyed
as key cost-saving measure pensions are an ever-growing cost for businesses, and one that is becoming increasingly difficult to manage. As an increasingly competitive business landscape pushes companies to find cost-cutting measures, portability of pension benefits across company brands is eyed as a key strategy. While pensions can be a valuable benefit for retirees, they can also be a costly account for businesses. According to a study by PwC, pension costs for businesses will grow from 4.3% of total labour costs in 2016 to 5.8% of total labour costs by 2020. The main culprit for this cost growth, according to PwC, is the fact that workers are staying longer in their careers, resulting in increased pension costs for employers. Portability of pension benefits is seen as one way of mitigating the costs of pensions for businesses. This is because pension benefits are often tied to the company that the employee worked for during their career. If the employee retired from their company, they would likely want their pension benefits ported to a new company. While portability of pension benefits is not new, companies are increasingly looking at it as a cost-saving measure. One example of a company that is looking into portability is PepsiCo. According to